The Shanghai Composite, the benchmark equity index for stocks trading on mainland China, has tumbled almost 13 percent over the past month, but that slide is not a factor in MSCI Inc. (NYSE: MSCI)'s decision regarding the inclusion of China A-shares in major global equity indexes such as the MSCI Emerging Markets Index.
“U.S. index provider MSCI said recent violent market gyrations in China, and a barrage of interventions by the authorities to stop the rout, will not be a factor in deciding whether to include China-listed shares in its emerging markets index,” according to a Reuters report out late Tuesday night.
In June, MSCI delayed the inclusion of A-shares in its global indexes, saying in a statement issued at that the time “Liquidity is a critical component of the investment process. Regardless of the channel they use, investors say that they need access to daily liquidity. They believe that this access should apply to all investment vehicles.”
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