16 June 2016 at 0:00 GMT
The South China Morning Post
Beijing didn’t just lose face but it also faces more capital outflows after global share index compiler MSCI declined to include mainland A shares in its emerging market indices. Enoch Yiu writes that the rejection, the third time in three years, had the effect of calling off billions of dollars worth of stock buying orders in A shares listed in Shanghai and Shenzhen. The MSCI emerging market indices are tracked by $1.7 trillion in assets managed by the world’s largest pension funds, insurers and institutional investors. The inclusion of A-shares in the index would mean these big stock buyers would all need to add Shanghai or Shenzhen A shares to their portfolios.
Read full article at The South China Morning Post