China A Shares, Pakistan and Saudi Arabia set to be included in MSCI Indices
In a June 9th Press Release, MSCI Inc., the premier provider of global equity indexes, announced that it expects to include China A shares in the MSCI Emerging Markets Index after a few important remaining issues related to market accessibility have been resolved. MSCI and the China Securities Regulatory Commission (CSRC) will form a working group aimed at resolving these issues.
“Substantial progress has been made toward the opening of the Chinese equity market to institutional investors,” said Remy Briand, MSCI Managing Director and Global Head of Research in the release. “In our 2015 consultation, we learned that major investors around the world are eager for further liberalization of the China A shares market, especially with regard to the quota allocation process, capital mobility restrictions and beneficial ownership of investments.”
MSCI also stated that it will include the MSCI Pakistan Index in its 2016 Annual Market
Classification Review for a potential reclassification to emerging markets. In addition, MSCI said that it will seek feedback from international institutional investors on the accessibility of the Saudi Arabia equity market following its opening on June 1, 2015 before considering adding the MSCI Saudi Arabia.
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