SHANGHAI, June 16 China's securities regulator
said on Friday that it hopes U.S. index provider MSCI will
decide next week to include the country's so-called A shares in
its Emerging Market Index - but if not, Chinese
capital market reform will not be derailed.
"We would always be happy to see that A shares are included
in the MSCI index, and we could welcome such a decision," Zhang
Xiaojun, China Securities Regulatory Commission (CSRC) spokesman
told a news conference, according to CSRC's official website.
"Any emerging market index, including MSCI's, would be very
incomplete without China stocks."
However, Zhang added that whatever the result, the direction
of China's capital markets reform, and the pace of the country's
opening, will not be changed.
MSCI has rejected China's inclusion three times. It is due
to announce shortly after 4.30 pm New York time on Tuesday, June
20 - early Wednesday morning in Shanghai - whether to open up
its Emerging Markets Index to China shares.
Investors and analysts have said a "yes" decision is likely
this time, after MSCI proposed in March to change the
methodology for a China inclusion.
The proposal reduced the weighting of Chinese shares for
potential inclusion, cutting the number of stocks to 169 from
448 in a bid to address curbs on repatriating capital from China
and concerns over the country's high number of suspended stocks.
(Reporting by Samuel Shen and John Ruwitch)