So, like it, or not (and there are worries about the transparency of some Chinese companies), these stocks are now on our radars.
The US index provider said on Tuesday it would add 222 China-listed stocks to its Emerging Markets Index (EMI), tracked by around US$1.6 trillion, with the inclusion process starting in June 2018.
"Global investors should embrace this structural shift sooner than later, and reap the early-mover benefits in being fully positioned to participate in both onshore and offshore Chinese equities", said Mike Shiao, chief investment officer of Asia ex Japan.
Since negotiations in the 1990s over China joining the World Trade Organization, it has always been thought that by bringing the country into global forums and institutions the hand of pro-market reformers would be strengthened - that China would adopt worldwide norms when it comes to regulation and transparency.
MSCI chose to include mainland Chinese stocks to its Emerging-market indexes next year.
Shares of Ishares Msci South Africa Index Fund (EZA) is moving on volatility today 1.69% or 0.96 rom the open.
Argentina's Merval fell more than 5% after MSCI said it isn't.
ANALYST'S TAKE: "Chinese authorities have been garnering for this positive decision and this recognition of the country's efforts in opening up the financial market could really encourage more to be done that could lead to greater capital inflows", Jingyi Pan, a market strategist at IG in Singapore, said in a daily commentary.
China's financial system took another step towards integration with the rest of the world this week - but not quite the way that was envisioned years ago. For global investors, while the inclusion will not trigger an immediate and wholesale change in their asset allocation, it will put Chinese equities on the map.
And, as shown in this chart from Credit Suisse, most of these passive funds - exchange-traded funds (ETFs) - are heavily invested in Australia's largest stocks.
How will inclusion proceed from here?
Sebastien Lieblich, global head of index management research at MSCI declined, however, to provide a likely timeline for the full inclusion of "A" shares, saying it would depend on continued progress on China's reform agenda.
China's mainland-traded stocks are known as "A" shares in China. After being up by as much as 1.6 percent earlier in the day, benchmark US crude turned lower and was down $1.06, or 2.4 percent, to $42.4 per barrel.
Chinese companies listed overseas already account for 28 percent of the EM Index as of May but the addition of domestic, yuan-denominated China stocks could see the country account for as much as 40 percent of MSCI's Emerging Market Index in the future.
Fosun International and Fosun Pharmaceutical rose sharply, after the companies said operation was normal, in response to media reports about a probe into loans to their parent company.
Why symbolism can still matter?
For now, investors appear to have largely shrugged off the impact of the MSCI decision, noting its symbolic significance to China but that the inclusion is small in scale.