International investors’ concerns about the effect of China’s capital controls have once more put paid to hopes that MSCI would finally include the world’s second-largest market in its globally-followed indices, the Financial Times reports. The index provider had raised expectations that it would accept mainland A-shares when it laid out a “road map” for inclusion in March. But on Tuesday in New York, MSCI said it would delay China’s entry into its widely-used emerging market index. Including mainland shares would have been seen as a vote of confidence in China’s market development after Beijing introduced several market reforms following last summer’s rout, when its heavy-handed approach and companies’ ability to suspend their shares at will unnerved international onlookers.
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