ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
The Chinese government seems more likely to continue with easy and short-term fixes for some time to come.   © GettyImages

A-shares move will not solve China's capital flows problem

Beijing remains uncommitted to market reforms despite MSCI announcement

Henny Sender, Nikkei Asian Review columnist | China

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more