It seems that the market feel relieved as the risk event finally passed. MSCI’s decision was, to some extent, in line with market expectation as it announced last week it would not hold press conference after today’s decisions. This was interpreted by the market that it would not include A shares into its index. Just like the thoughts that FED is less likely to increase interest rate if there is no press conference after FED meeting.
Data released on Wednesday afternoon showed that China’s aggregate financing to the real economy increased 659.9 billion yuan in May, well below the market expectation of 1 trillion yuan.