China Regulator CSRC Measured, Stock Markets Muted in Reaction to MSCI Decision

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.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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