An investor watches stocks on a monitor at a local trading center in Nanjing, East China's Jiangsu Province on Friday. Photo: VCG

China's A-share market is expected to be included in the index of FTSE Russell, a global index and data provider and a unit of the London Stock Exchange (LSE) on Monday, marking another milestone in the Chinese equity market's accelerating internationalization.

A shares will be classified as a secondary emerging market under the FTSE Global Equity Index Series and the inclusion process is scheduled to be completed on March 23, 2020, according to a statement from FTSE. 

The inclusion in the FTSE Russell is a significant step for the A-share market to gain global recognition and investment, Xu Hongcai, deputy director of the Economic Policy Commission at the China Association of Policy Science, told the Global Times on Sunday.

"For the A-share market, the most direct impact will be a flow of investment since the FTSE Russell index is among the leading equity benchmarks for institutional investors," Xu said. "As one of the most credible indexes, it will also guide other investors and encourage more capital in the Chinese A-share market."

According to a report by yicai.com, David Schwimmer, CEO of the LSE, estimated that the inclusion of the A-share market into the FTSE Russell index will bring about $10 billion from global investors. 

"Although $10 billion is not a hugely significant amount in itself, [the inclusion of A shares] is a huge step in being recognized internationally, and it is also significant for the opening up of the capital market in China," Xu said.

On June 17, the KraneShares Bosera MSCI also included China's A-share market. Xu noted that the inclusion of the A-share market into these indexes amid the ongoing trade war is a crucial sign of global confidence. 

"It is undeniable that the ongoing trade dispute is putting more uncertainty on the table than ever before, but I think that international recognition such as moves involving the FTSE Russell and the MSCI index show that there is strong confidence and enduring investment interest in the Chinese market."