Arab Today, arab today better early than late for msci inclusion of china ashares
Last Updated : GMT 18:05:09
Arab Today, arab today
Arab Today, arab today

Better early than late for MSCI inclusion of China A-shares

Arab Today, arab today

Arab Today, arab today Better early than late for MSCI inclusion of China A-shares

Beijing - Xinhua

Global equity indexes provider MSCI took a discreet stance, again, by announcing on Wednesday that it would delay the inclusion of Shanghai- and Shenzhen-listed stocks, or A-shares, on to its emerging market index.

The decision is understandable, in light of lingering uncertainty and concerns, but might lack foresight when reviewed in the near future.

It is a pity that the decision-makers have been hesitant, again.However, the MSCI decision is a delay not a rejection, after all, the world's second largest and fastest growing capital market is just too big to ignore.

A global stock index without China A-shares is incomplete and cannot fully represent the potential market value of emerging countries. Regrettably, for the long-term interests of Chinese and global investors, it would have been better to have acted sooner rather than later.

International investors should not hold out for the "perfect scenario." The sooner MSCI includes China A-shares, the sooner the Chinese, and global, capital market will reap the gains from wider connectivity, and the more opportunities international investors will enjoy.

MSCI acknowledged China's significant improvements in accessibility of the yuan-denominated A-shares market, but expected more progress, adding the inclusion will still be discussed in its 2017 review with odds of a potential off-cycle announcement, should further positive developments occur ahead of June 2017.

Chinese financial authorities have reduced investment barriers by relaxing quotas on foreign investment in domestic stocks, allowing for more flexible remittance of funds and revising existing rules to better regulate suspensions and limit trading halts.

The Shanghai-Hong Kong Stock Connect, a program to expand foreign fund access to Chinese mainland, has seen active transactions since its establishment in 2014. Similar initiatives, to connect Shenzhen with Hong Kong and Shanghai with London, to make the market more accessible are also in the pipeline.

China still has a long way to go in its journey to become a truly open and mature capital market and it will take time. But with China's gradual opening guaranteed to continue, getting ahead of it with more investment via earlier MSCI inclusion would offer bigger and better opportunities.

The inclusion will offer global investors more diversity, deeper emerging market exposure and greater access to the growth potential of Chinese equities.

The short-term impact of inclusion for China will actually be small with limited foreign capital inflow during the initial stage, but it could push for faster market maturity with more institutional investors entering the country's retail-driven stock markets.

Discretion is necessary as global clients are cautious about including new stock markets, but this decision can not come soon enough for the world and China to benefit.

MSCI inclusion or not, China will continue to liberalize its capital market at a gradual pace and in a steady manner to avoid wild swings to the detriment of global financial stability.

source : xinhua 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today better early than late for msci inclusion of china ashares Arab Today, arab today better early than late for msci inclusion of china ashares

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 08:14 2017 Friday ,17 February

Bahrain Bourse daily trading report

GMT 21:28 2017 Thursday ,16 February

US Stocks End High on Tuesday

GMT 21:18 2017 Thursday ,16 February

Chinese Yuan Strengthens to 6.8632 Against USD Wednesday

GMT 09:55 2017 Thursday ,16 February

Robust Omani Riyal exchange rate affirmed

GMT 09:00 2017 Thursday ,16 February

Bahrain Bourse daily trading report

GMT 05:07 2017 Thursday ,16 February

Saudi stocks rise 0.6%

GMT 04:45 2017 Thursday ,16 February

Gold prices edge lower
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 15:16 2017 Sunday ,19 February

Apple to start India operations with iPhone SE

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday