MSCI cushions China A-shares delay with regulator working group
[HONG KONG] Closer ties with China's regulator will accelerate the timeline for adding mainland stocks to global benchmark indexes, MSCI Inc said after deferring their inclusion for a second time.
The index compiler and the China Securities Regulatory Commission will form a group to discuss global investors' concerns about the accessibility of the world's second-biggest equity market, according to a statement from MSCI late Tuesday. It held off putting domestic A shares into its gauges, highlighting investment quotas, capital lockups and ownership rights as barriers for foreign funds.
MSCI is being "more transparent in what they are doing with the CSRC," William Chan, Hong Kong-based head of regional equity-derivatives research at Bank of America Corp.'s Merrill Lynch unit, said by phone. "They have been putting the ball back into CSRC's court in terms of what they need. It's now more clear for market participants."
The index compiler departed from its practice of reviewing market classifications once a year, saying its decision on China could come at any time.
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