China finally cracks the MSCI nod, but that was not what surprised markets
New York/Hong Kong — China’s stocks took a major step towards global acceptance on Wednesday, finally winning a long campaign for inclusion in a leading emerging markets benchmark, in what was seen as a milestone for global investing. US index provider MSCI said on Wednesday it would add a selection of China’s so-called A shares to its emerging markets index, having rejected them for three years running. China joins SA, Brazil, Qatar, Russia and India, among other countries, on the emerging markets index. In the broader overhaul, MSCI surprised many investors by failing to upgrade Argentina from the frontier market category where it has languished in recent years, but said it would consult investors about adding Saudi Arabia to the benchmark. Inclusion in the index marks a key victory for the Chinese government, which has been working steadily over the past few years to open up its capital markets, investors said. "Given the size and importance of China as an economic superpower, I ...
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