MSCI to decide on China A-shares June 20

MSCI will announce on June 20 whether it would finally include China’s domestic A-shares in its global indices. The US index provider last June delayed for a third straight year the A-shares’ inclusion into its benchmark $1.5tn emerging markets stock index, citing regulation worries and accessibility for global investors. Inclusion on the index would have been a major step forward for Beijing as it attempts to open up its financial markets and attract foreign capital. Ahead of this year’s decision, China has embarked on a series of new actions aimed at addressing these concerns, according to the Financial Times. Its banking regulator has launched a “regulatory windstorm” while the central bank has made the first move to ease capital controls, providing much needed liquidity to the offshore renminbi market.