The China Securities Regulatory Commission (CSRC) has shed some light on the kinds of companies that are eligible to list on the Star board, solving part of a problem that has long puzzled potential IPO candidates.
China Index Inclusion
MSCI Review 2016
Markets may have shrugged off MSCI’s decision not to include A-shares in its latest review but it proved to be more of a shock to some of the major investment banks which had forecast inclusion as the most likely outcome.17 Jun 2016
MSCI has once again highlighted the inability for foreign investors to move money freely in and out of China as a reason for leaving A-shares out of its Emerging Market Index. While the world’s second largest economy has moved quickly to reform other parts of its financial sector, market participants are divided about whether China will budge on capital controls.16 Jun 2016
Index provider MSCI has surprised markets by once again delaying the inclusion of A-shares in its Emerging Markets index. While some progress has been made, China still has more work to do to tackle concerns around repatriation and restrictions on launching financial products linked to onshore exchanges, the firm said on June 14.15 Jun 2016
MSCI’s decision to not include China A-shares into its Emerging Market index drew little reaction with both the currency and the major stock indices holding up well during Wednesday trading.15 Jun 2016
While opinions range on how appropriate it will be for MSCI to go ahead with the inclusion of A-shares into its global benchmarks, the index provider has been giving greater space to US-listed Chinese stocks. But despite the decision on A-shares being just over a week away, market participants are still weighing the pros and cons.07 Jun 2016
MSCI completed its latest review of its Emerging Market indices in June 2016 and for a third time refused to include China A-shares.
The index provider said that while some progress has been made, institutional investors still had plenty of concerns about restrictions on taking money out of the country and the approval process for A-share linked financial products.
Any decision will now be part of the 2017 review. However MSCI did leave open the possibility of an “off-cycle announcement” if Chinese regulators address its concerns.
Click below to access MSCI documents on its justification for the delay in 2016 and its 2015 review.
MSCI A-share inclusion roadmap
The China Securities Regulatory Commission (CSRC) has shed some light on the kinds of companies that are eligible to list on the Star board, solving part of a problem that has long puzzled potential IPO candidates.23 Mar 2020
Shanghai Titan Scientific, Speechocean and Easton Biopharmaceuticals are all planning to make a second attempt at listing on Shanghai’s Star market.18 Mar 2020
Guangzhou R&F Properties Co has become the latest Hong Kong-listed mainland company planning to convert its domestic shares into H-shares, after China fully opened up the H-share full circulation scheme last November.11 Mar 2020
The Chinese regulator’s decision to loosen rules around follow-on offerings in the domestic market has brought a resounding vote of approval from corporations. In just four days, 46 companies have set out plans to tap the equity capital market.19 Feb 2020
New York-headquartered MSCI has included a Star board listed company in its China-related indices, alongside well-recognised names such as Luckin Coffee and Zai Lab.13 Feb 2020