MSCI: China faces ‘Complex Process’ to join Index

An executive at index provider MSCI Inc. Monday said Chinese regulators face a complex process to satisfy requirements for mainland shares to join one of its widely tracked indexes.

“You cannot underestimate the complexity of the process involved in making the necessary changes,” said Chris Ryan, MSCI’s MSCI, -3.07% head of Asia-Pacific. The country’s securities regulator, the China Securities Regulatory Commission, “has to coordinate amongst nine or more government agencies,” he said.

MSCI’s decision this month not to include China’s mainland-listed shares in its Emerging Market Index, citing market-access issues, was a blow. An inclusion this year would pave the way for U.S. and European stock funds to invest more in China.

Source: MarketWatch