MSCI Denies Chinese Stocks on Grounds of Market Accessibility Concerns

The MSCI has delayed the inclusion of Chinese stocks into its emerging markets index due to investor concerns.

MSCI, a New York based provider of equity, fixed income, and hedge fund stock market indexes, has denied the inclusion of Chinese A-Shares into the company’s emerging markets index. While highlighting some progress which Chinese authorities have made in recent years, the index provider has outlined that the exclusion of Chinese shares into the index hinges on accessibility.

The MSCI Emerging Markets Index has become a benchmark for a number of investors which are looking for investments beyond the traditional markets.

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Over the past several quarters Chinese authorities have taken measures to facilitate access to trading the China A shares market for global investors. The Managing Director and Global Head of Research of MSCI Remy Briand said: “There have been significant steps toward the eventual inclusion of China A shares in the MSCI Emerging Markets Index.”

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“Chinese authorities demonstrate a clear commitment to bring the accessibility of the China A shares market closer to international standards. We look forward to the continuation of policy momentum in addressing the remaining accessibility issues,” he outlined in the official review issued by MSCI.

According to the index provider institutional investors are still concerned with the level of accessibility to the market and the measures which were taken by Chinese authorities to arrest the stock market decline in the country during the past several quarters might have had a substantial impact.

“In keeping with its standard practice, MSCI will monitor the implementation of the recently announced policy changes and will seek feedback from market participants,” Briand explained.

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