China Center Quick Take: China's MSCI Rejection — Reform and Conform, or Don't Play

MSCI’s decision to (again) exclude China’s A Shares from its Emerging Markets Index is a surprise insofar as the global organization held to its standards rather than bend to China’s. This financial market development bears important implications for real-economy MNCs and shouldn’t go unnoticed.

This result, combined with several other similar stories now evolving, suggests that external factors will likely exert increasing pressure on China to reform and conform if it is to become a full-fledged and leading member of the global business community. It stands to reason that this dynamic will eventually be helpful in creating more normalized operating conditions within China for MNCs.