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Welcome to the Jungle: a Guide to China for MSCI's Investors

  • Mainland market idiosyncrasies may shock unblooded investors
  • Capital controls, government intervention complicate trading
Bloomberg business news

MSCI Delays Argentina, Saudi Arabia EM Decisions

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China’s equities will finally be opened up to a whole new world of foreign investors via the MSCI Inc. decision. But are they ready?

Dominated by retail investors and periodically pushed around by the ever-hovering hand of the state, the $6.9 trillion mainland market may be a culture shock for the pension funds and institutions that track MSCI’s benchmarks. The New York-based index compiler rejected China three times before agreeing to admit 222 mostly big-cap stocks Wednesday, with issues to do with Beijing’s control of the market at the top of their list of concerns.