China Index Inclusion

China index inclusion

Unlocking the equity and bond markets

MSCI Review 2016

  • MSCI outcome surprises major investment banks

    MSCI outcome surprises major investment banks

    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.

  • A-shares: All eyes on repatriation

    A-shares: All eyes on repatriation

    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.

  • Spurned: MSCI delays A-share inclusion

    Spurned: MSCI delays A-share inclusion

    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.

  • Markets nonplussed by A-share non-inclusion

    Markets nonplussed by A-share non-inclusion

    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.

  • Yes, no, maybe: A-shares MSCI inclusion foxes investors

    Yes, no, maybe: A-shares MSCI inclusion foxes investors

    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.

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


More stories

  • Evergrande abandons A-share backdoor listing

    Evergrande abandons A-share backdoor listing

    China Evergrande Group has abandoned a backdoor listing plan for its property arm and flagship subsidiary Hengda Real Estate on the Shenzhen exchange, ending a reorganisation that started four years ago.

  • China stuns market by halting Ant IPO at the eleventh hour

    China stuns market by halting Ant IPO at the eleventh hour

    The Shanghai Stock Exchange stunned the market on Tuesday by halting Ant Group’s $34bn IPO, set to be the largest listing in history, just two days before the company’s planned stock market debut. The extraordinary move is expected to delay the listing by at least six months. It will also force investors to revalue the company, write Jonathan Breen and Addison Gong.

  • China pulls plug on Ant Group IPO

    China pulls plug on Ant Group IPO

    The Shanghai bourse stunned the market on Tuesday after halting Ant Group’s $34bn IPO, a deal which was set to be the largest listing in history. The extraordinary move, likely spurred by comments from Ant’s co-founder Jack Ma that criticised authorities for stifling innovation in China, is expected to delay the listing by at least six months. It will also force investors to revalue the company.

  • Ant gets record retail interest for Star IPO

    Ant gets record retail interest for Star IPO

    A record number of retail investors in China fought for the Shanghai portion of Ant Group’s landmark dual listing this week, channelling Rmb19tr ($2.83tr) of orders into the world’s largest IPO.