MSCI To Wait On Including Chinese Shares In Key Indexes

Global stock-index compiler MSCI Inc. said late Tuesday that it will wait to add mainland China-listed shares until "a few important remaining issues related to market accessibility have been resolved." In a statement, the company said it "expects to include China A-shares in its global benchmarks" once those issues are worked out, and plans to form a working group with Chinese stock regulator China Securities Regulatory Commission to address the concerns. MSCI offered a list of some issues it would discuss with the regulators, including the allocation of investing quotas for large investors, capital mobility and details over beneficial ownership. "Recognizing the significant progress to date and ongoing reform efforts, China A‐shares will remain on the 2016 review list for potential inclusion into Emerging Markets," MSCI said. The eventual inclusion of Chinese A-shares in MSCI's Emerging Markets Index , tracked by an estimated $1.7 trillion in assets worldwide, is expected to provide a strong though likely temporary boost to Shanghai stocks.