Chinese stocks fall short for MSCI

摘要

MSCI will not include China's A-shares in its benchmark emerging markets index until the world's second-largest economy made some improvements to its US$3.9trn equities market. The decision spelled relief for both onshore and offshore investors, who were worried that including mainland equities in an index tracked by US$1trn of global funds would send China's booming stockmarket to unsustainable valuations. Top of the index provider's list of reasons for not yet giving the securities the green light was that the shares were ultimately inaccessibility for offshore investors, despite the progress made under the Shanghai-Hong Kong Stock Connect. MSCI said it would begin discussions with the China Securities Regulatory Commission about how it could improve the allocation of A-share quotas, alleviate capital mobility restrictions and clarify the beneficial ownership of securities.