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MSCI has announced that we will delay including China A shares in the MSCI Emerging Markets Index. 

Over recent months, Chinese authorities have introduced significant improvements in the accessibility of the China A shares market for global investors.  In our 2016 consultation, investors recognized the actions taken to further open the China A shares market and highlighted that the topic of beneficial ownership has been satisfactorily addressed.

However, they generally stressed the need for a period of observation to assess the effectiveness of changes in QFII quota allocation and capital mobility policies, and to monitor the effectiveness of new trading suspension policies.  In addition, the 20% monthly repatriation limit remains a significant hurdle for investors, and local exchanges’ pre-approval restrictions on launching financial products remain unaddressed.

As a result of these concerns, MSCI will retain the China A shares inclusion proposal as part of our 2017 Market Classification Review.  We don’t rule out a potential off-cycle announcement should further significant positive developments occur ahead of June 2017.

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Press release

Press release

New York – June 14, 2016 – MSCI Inc. (NYSE: MSCI), a leading provider of global equity indexes, announced today that it will delay including China A shares in the MSCI Emerging Markets Index.

MSCI Emerging Markets Index

MSCI Emerging Markets Index

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CNBC Fast Money Interview

CNBC Fast Money Interview

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