Policy makers in the world’s second-largest economy moved to address at least nine of MSCI’s concerns for entry -- including revised rules on trading halts and relaxed curbs on investor withdrawals -- though the firm ultimately concluded that the country had more work to do. MSCI’s announcement came two days after a senior Chinese official called inclusion a “historical certainty” at a panel discussion in Shanghai.
“Countries who want to expand and deepen their own financial markets by seeking global capital flows have to submit to what is required,” said Scott Colyer, CEO of Advisors Asset Management in Colorado. “China is asking MSCI for inclusion. MSCI has no obligation to oblige.”