MSCI stalls on China A-Shares index inclusion

Index provider MSCI has said it will not include China A-Shares in its global and emerging market benchmarks until issues relating to liquidity and ownership are resolved.

In a keenly-awaited decision, MSCI said “substantial progress” had been made in liberalising Chinese equity markets, but called for more to be done regarding quota allocations, beneficial ownership of investments, and restrictions on capital. The provider said it expected to include A-shares in its Emerging Markets index as soon as this issues are resolved, adding the announcement of inclusion would not necessarily have to wait for its next annual review. The lack of immediate progress, however, saw Chinese onshore stocks dip. The Shanghai Composite fell more than 2% on the news, as i...