16 June 2016 at 1:00 GMT
Nikkei Asian Review
MSCI's decision to postpone the inclusion of Chinese A shares into a key stock index drove the yuan weaker on Wednesday, dealing a blow to Beijing's efforts to make it a global currency. In what a Hong Kong investment banker called with intended exaggeration the “MSCI shock”, the yuan fell in the offshore market following the decision. Beijing's heavy-handed interventions following last year's domestic-stock crash and yuan plunge eroded investor confidence. “International institutional investors clearly indicated that they would like to see further improvements in the accessibility of the China A shares market before its inclusion in the MSCI Emerging Markets Index,” said Remy Briand, MSCI managing director and global head of research.
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