China's stocks just hit the big time — $80 billion in Chinese equities could now flow into one of the world's major indexes

The move, MSCI says, might draw more than $80 billion of fresh foreign inflows to the world's second-biggest economy.

The weighting increase, announced on Thursday, may be a milestone in Beijing's efforts to internationalize the yuan. The decision, largely within expectations, marks a win for Beijing, which has stepped up efforts to woo foreign investment in the face of a slowing economy and prolonged trade friction with the United States.

The index provider will increase the inclusion factor of Chinese large-cap stocks to 20 percent from the current 5 percent in three steps, with increments of 5 percent in May, August and November. The MSCI announcement could give a lift to a stock market that has jumped about 20 percent so far this year, partly on hopes that Beijing and Washington will soon reach a deal resolving their trade dispute.

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