MSCI will probably be adding Chinese mainland stocks to its emerging markets index.
MSCI was due to announce Tuesday evening whether or not it would expand its emerging markets index with the addition of Chinese A-shares, the index provider said in a statement. MSCI seems to have taken a page from the Federal Reserve’s communication plan and said they’d maybe add the stocks, when they’re ready. It could happen at any time — not just during an official review period.
MSCI rejected the A-shares last year, saying the stocks were too limited by Chinese regulations. Officials in the Middle Kingdom have moved to loosen regulations and make their stocks, and the yuan, more appealing to foreigners. MSCI says great, but just not quite great enough.
One China watcher summed up the decision:
At the end of the day, beyond the sweet and encouraging words, MSCI did not add China A-shares to its indices today.
— Patrick Chovanec (@prchovanec) June 9, 2015
Photo: Dennis Jarvis via Flickr.