MSCI Inc. (NYSE: MSCI) on Tuesday finally said it plans to include Chinese-listed shares to its benchmark emerging markets index.

The index company said it will add 222 China A Large Cap stocks on a gradual basis starting in June 2018, accounting for nearly 0.7 percent of the MSCI emerging markets index.

"International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion," Remy Briand, MSCI Managing Director and Chairman of the MSCI Index Policy Committee, said in a release.

The Chinese stock market has been known as high volatility, frequent trading halts and limitation for foreign investor access. MSCI has been considering the inclusion for fourth straight year and finally made the decision yesterday.

The Shanghai Composite Index was up 0.52 percent on Wednesday. The index had only gained 1.2 percent year-to-date, compared with more than 18 gain for iShares MSCI Emerging Markets ETF.

 “This decision has broad support from international institutional investors with whom MSCI consulted, primarily as a result of the positive impact on the accessibility of the China A market of both the Stock Connect program and the loosening by the local Chinese stock exchanges of pre-approval requirements that can restrict the creation of index-linked investment vehicles globally,” MSCI said in