When the global index provider MSCI announced that it had decided to include China's onshore A-share market in its emerging market indices, the widely tracked CSI 300 index of major Chinese shares rose sharply, hitting a 17-month high of 3,587.96 on June 21, the first trading day after the announcement.
The CSI index has remained strong, closing at 3,674.72 on June 27. But a more muted response might have been more appropriate. The announcement was replete with qualifications. Only 222 stocks are eligible for inclusion in the MSCI index, and even that involves a two-step process in May and August of 2018.