China MSCI inclusion is no sweat for India

Since 2014, MSCI has been considering adding the A-shares to its indices

China is by far the world’s biggest emerging market (EM), yet the nation’s locally listed shares—referred to as China A-shares— are not part of the major global indices such as MSCI EM.

The reason being the country has several restrictions on participation by overseas investors and its trading rules are seen as opaque.

Since 2014, MSCI, biggest global index provider, has been considering adding the A-shares to its indices. However, the index compiler had laid down several pre-conditions, such as making the market more accessible to foreign investors and linking its stocks with Hong Kong.

Although China has only partially