You are here

China: Stocks open down after MSCI decision to not include A shares in benchmark

Wednesday, June 10, 2015 - 09:51
chinastocks100615.jpg

[SHANGHAI] China stocks opened lower on Wednesday, after US index provider MSCI Inc said it would hold off including China-listed shares in one of its key benchmark indexes, citing market accessibility issues.

The CSI300 index fell 1.2 per cent, to 5,254.30 points, while the Shanghai Composite Index lost 1.3 per cent, to 5,049.20 points.

China CSI300 stock index futures for June were down 0.9 per cent, at 5,223.2, a spread of 7.2 points below the current value of the underlying index.

The decision was seen as bad news for daily stock market performance, coming as Chinese investors are already bracing for a new wave of initial public offerings, including Guotai Junan's mega IPO, which could raise up to US$4.8 billion. "This time, China stocks are not included. But they will be sooner or later," Shenwan Hongyuan Securities Co said in a research note. "The result is within market expectations, so I think the market can digest the news in a rational manner." Although MSCI said the decision around China-listed shares will remain on its 2016 review list, the thumbs-down shows that global asset managers still have reservations about Beijing's willingness to fully open up its capital markets.

REUTERS