Dan McClory on the benefits and risks to Chinese stocks based on the expansion of the MSCI index

MSCI will include over 200 Shanghai and Shenzhen-listed stocks in its EM index within a year, marking another win for China's financial and market reforms, as well as the country's opening-up efforts, after the IMF added in 2015 to its special drawing rights basket. What benefits and risks will the MSCI's decision give to Chinese stocks?

Hong Hao, Managing Director and Head of Research at Bocom International, Nicholas Lardy, Senior Fellow at the Peterson Institute for International Economics, and Dan McClory, Managing Director and Head of China for Boustead Securities, LLC, weigh in on the issue.