Further reform to earn stock index recognition
Reactions have varied to the news that MSCI, a US-based provider of capital market indexes, decided to delay inclusion of the Chinese domestic A-share market in its emerging market index.
Some Chinese investors are disappointed. That is because if the inclusion had not been postponed, the A-share market could have taken in $15 billion to $20 billion of new investment, according to at least one report in the Chinese media, which also predicted it might have reached $400 billion in 10 years.
The MSCI has reportedly considered whether to include the A share twice before, first in 2013 and then in 2015. But on neither of those occasions did it arouse so much reaction. That is because domestic investors were quite happy with the closed-door game they were playing.