MSCI’s decision to keep mainland-listed shares out of its key emerging markets index was a blow to China’s regulators, who had stepped up reforms in recent months to win over the index provider.
But the initial reaction from China was largely pragmatic, with state news agency Xinhua commenting that inclusion was “purely just a matter of time.”
The Shanghai composite and the Shenzhen composite opened down more than 1 percent each, but then retraced their losses to trade up 0.33 percent and up 1.44 percent respectively by mid-morning SIN/HK.
MSCI announced on Tuesday evening ET that it had once again decided not to include A shares in its EM index.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.