“This decision is based on feedback highlighting remaining investability constraints linked to the QFII and RQFII quota systems received from international institutional investors in a consultation launched in March 2014 on a potential roadmap for inclusion of China A-shares in the MSCI China and MSCI Emerging Markets Indexes,” said MSCI in June. [MSCI Declines to Promote A-Shares]
However, A-shares remains on the watch lists of FTSE and MSCI for possible promotion to emerging markets territory. In June, FTSE introduced a series of indices that will allow market participants to include China A-shares in global indices at a time of their choosing.
“The reason why A-shares are not yet included in some mainstream global indexes is not difficult to understand. Market accessibility is the overriding issuer. The existence of quota systems for overseas asset managers and capital mobility restrictions make it challenging for foreign investors to access the market freely,” according to the MSCI whitepaper.
KraneShares Bosera MSCI China A-Shares ETF
