Stinging MSCI Decision an Impetus for Reform

China's A-share market is undoubtedly an important investment target for global investors. Some trade A shares through the Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) programs, while others are in the game by virtue of various A share-related derivatives and exchange traded funds.

So when the global equities index provider MSCI Inc. recently announced that, for now, it would continue excluding Chinese A shares from its Emerging Markets Index – the firm's third such decision in three years – the China Securities Regulatory Commission (CSRC) was correct to stress that the decision would "not affect" the progress of capital markets reform.