MSCI set to announce inclusion of China A-shares in key index

Tokyo

NEARLY 30 years after the Shanghai Stock Exchange was relaunched in 1990, the opening of the Chinese stock market to outside investors was expected to make progress on Wednesday, with an announcement expected on the inclusion of certain Chinese stocks in a key international index.

Morgan Stanley Capital International (MSCI) was due to announce the inclusion of certain Chinese A-shares in the MSCI Emerging Markets Index (EMI).

The significance of this is that this index tracks stocks across 23 leading emerging markets, which would go some way to extending the "internationalisation" of China's stock market.

The move would give foreign investors more direct access to Chinese domestic stocks, rather than be restricted to investing via Hong Kong-listed H-shares; it also introduces institu…