Chinese Financial Reform, Moving at Beijing's Pace

Jun 15, 2016 | 16:35 GMT
Chinese Financial Reform Will Move at Beijing's Pace
China's ambitions to have its domestically traded A-shares listed in an international index fund were put off at least another year with a decision by global stock benchmark provider MSCI announced June 14.
(STR/AFP/Getty Images)

For three years, China and global stock benchmark provider MSCI have been working together to resolve concerns over China's domestic stock markets. Resolution would clear the way for MSCI to add China's domestically listed, yuan-denominated stocks known as A-shares to its emerging markets index. But for two years, those efforts had fallen short of MSCI's standards, and on June 14, the outcome was no different. Citing concerns over repatriation limits, untested trading suspension policies and the preapproval requirements by local exchanges (Shenzhen and Shanghai) for launching new financial products, such as exchange-traded funds (ETFs), MSCI opted not to include China's A-shares in the index. China will continue to work with the group in hopes of being included when MSCI does its next annual review in June 2017. The stock index firm even said it could include China's A-shares sooner should sufficient liberalization occur and the outstanding concerns be resolved before then....

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