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China A-shares:  MSCI’s Announcement

MSCI conducts an annual review of all countries we include in our indexes. This review helps to ensure that our indexes remain relevant and accurate investment tools for our clients, and that they continue to accurately reflect the equity markets that they are measuring.

We take a consultative approach in this review, meeting with members of the international investment community to make sure our decisions reflect their perspectives and practices.  Our discussions focus on three factors for each country we review: economic development, size and liquidity, and market accessibility.

On June 9th, we announced that we expect to include China A-shares in our global benchmark, the MSCI Emerging Markets Index, as soon as a few remaining issues related to market accessibility have been resolved.  We learned in our 2015 consultation that although institutional investors are eager to invest in China, a few more improvements must be made before they will consider the market to be sufficiently accessible.

We also announced that MSCI and the China Securities Regulatory Commission, or CSRC, are forming a working group to accelerate the resolution of the remaining issues.  MSCI’s role is to facilitate an exchange of information and ideas about the requirements of institutional investors as CSRC evaluates and implements its policy decisions.

Finally, we said in our announcement that we will include the MSCI Pakistan Index in our 2016 Annual Market Classification Review for a potential reclassification to emerging markets, and we will seek feedback from investors on the accessibility of the Saudi Arabia equity market before considering adding it to the review list for a potential inclusion in Emerging Markets.


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Have questions about MSCI’s Market Classification announcement?

2015 market classification press release

2015 market classification press release

Consultation on China-A shares inclusion

Consultation on China-A shares inclusion

Facts about the MSCI Emerging Markets Index

Facts about the MSCI Emerging Markets Index