MSCI defers decision on inclusion of A shares in global benchmark

Global index compiler MSCI Inc said on Wednesday that it had delayed including the Chinese A shares in its benchmark index as there were still some issues over market access, but said that it was working with the nation's capital market regulator to address the issue.

MSCI and the China Securities Regulatory Commission will form a working group to tackle the remaining accessibility issues and the index provider will include the A shares in the MSCI Emerging Markets Index as soon as the issues are resolved, which may happen "outside the regular schedule" of its annual market classification review, it said in a statement on Wednesday.

The yuan-denominated A-share market, the second-largest equity market by capitalization (following the United States market) and the most actively traded cash equity market globally, had missed its first opportunity in 2014 to join the MSCI Emerging Market Index, after it was picked for an annual review. The index is tracked by roughly $1.7 trillion of funds globally, according to Bloomberg data.