MSCI to China: Fix Issues Before We....>

CHINA STOCKS: MSCI to China: Fix Issues Before We Even Consider Adding Shares

(BBG)

- MSCI Inc. said it will only consider adding more yuan-denominated shares to

its indexes after China addresses concerns over market accessibility. The index

compiler outlined four main outstanding issues in a Tuesday statement. They

include a dearth of hedging tools and derivatives, China's short settlement

cycle, the onshore market's holiday misalignment with Hong Kong and a lack of

mechanisms allowing brokers to place a single order on behalf of multiple

clients. While the concerns aren't new -- and have been flagged by investors for

years -- the statement marks a slight change of tone for MSCI. The company is

now saying it won't even consult on greater A-share inclusion until the issues

are fixed, putting the onus on China. In February, it said further inclusion

"would require" authorities to improve market accessibility.