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Equities

Investors warn of risks as Chinese A-shares join MSCI indexes

High volatility, trading halts and poor governance issues raise red flags

A stock market investor in Shanghai. MSCI on June 1 will partially include A-shares in its MSCI China Index, which comprises Chinese companies trading on overseas exchanges.   © Reuters

HONG KONG -- More than 200 Chinese mainland-listed stocks will be included in some of the world's most widely tracked benchmark indexes beginning June 1, and billions of dollars will begin flowing into China's domestic markets. But some foreign investors are not in a hurry to rush in, as some fundamental concerns among traders and market watchers over basic market operations remain unresolved.

MSCI, in an initial step, on Friday will partially include A-shares in its MSCI China Index, which comprises Chinese companies trading on overseas exchanges, the MSCI Emerging Markets Index, and other MSCI indexes.

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