China MSCI Decision Puts Onus Back on Xi's Market Reformers
- Inclusion gives $6.9 trillion equity market tiny weighting
- MSCI looking for further progress on trading controls
MSCI Delays Argentina, Saudi Arabia EM Decisions
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China’s initiation into MSCI Inc.’s club has put the world’s second-biggest stock market on a new global footing. Yet spinning that endorsement into what really matters -- significant investment flows -- is a whole other challenge.
By August 2018, Chinese domestic stocks will make up 0.7 percent of the MSCI Emerging Markets Index, the index firm said Tuesday. That’s a smaller sliver of the gauge than held by Brazil’s Itau Unibanco Holding SA, which helps explain the muted reaction by mainland traders on Wednesday. For China to win a standing more in keeping with its economic heft, MSCI made it clear President Xi Jinping would need to take further steps to open his nation’s markets.