Global Investors and China

MSCI: China stocks opened down on Wednesday after the news, with the CSI300 index <.CSI300> falling 1.2 percent, while the Shanghai Composite Index <.SSEC> lost 1.3 percent, but later edged back into positive territory, according to Euro News. In the run-up to Tuesday decision, some foreign investors had worried about the potential disruption and cost of being pushed to invest in China volatile $9 trillion stock market if A shares were included in MSCI widely tracked benchmark. Despite a recent acceleration of its reform agenda, MSCI said global investors wanted China to go further in removing barriers that make it difficult for foreigners to invest in the country before it includes so-called A shares in its Emerging Markets Index <.MSCIEM>. tracked by $1.7 trillion of funds. This is a welcome reprieve for global investors and I suspect there has been a collective sigh of relief from the asset management world this morning, said Jonathan Ha, chief executive of Red Pulse, a Shanghai-based markets research firm. I think the remaining issues could be addressed in between three to six months. The ball is in China court in terms of addressing the quota and ownership issues, but this is also a gentle nudge for managers to get ready. (news.financializer.com). As reported in the news.