MSCI postpones inclusion of Chinese A-shares in EM index

Further improvements needed

Index provider MSCI has decided to postpone adding China's A-shares to its benchmark emerging markets index, saying the country needs to demonstrate further improvements before the move can be made.

MSCI gathered feedback from market participants on the potential inclusion of A-shares into its flagship emerging markets index and found concerns remained over the openness and transparency of the onshore Chinese market. Remy Briand, global head of research at MSCI, said: "International institutional investors clearly indicated they would like to see further improvements in the accessibility of the China A-shares market before its inclusion in the MSCI Emerging Markets index." China A-share's low valuations stand out among the world's major market indices However, MSCI recognised ...