MSCI Says China's Trading Halts May Keep It Out of Stock Indexes
- Index compiler will decide on A-share inclusion in June
- Chinese equities are leading global declines this year
MSCI Says China Must Limit Market Intervention
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MSCI Inc. signaled China’s attempts to stem its stock rout have dealt a blow to the nation’s efforts to get shares included in global indexes.
The index compiler wants authorities to commit to preventing a repeat of the trading halts seen in last year’s selloff, MSCI said in a statement, starting a fresh round of discussions before a June decision on whether to put mainland stocks in its benchmark gauge. After MSCI held off on taking that step last year, a plunge wiped $5 trillion from the world’s second-biggest equity market and spurred unprecedented government intervention. As stocks tumbled in July, half the companies listed in China were allowed to suspend their shares.