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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.

CNBC [1]

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Craig Erlam

Craig Erlam [4]

Senior Currency Analyst at OANDA [5]
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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