THE stock-index compiler MSCI said Friday it would offer an index of China A shares for international investors, after putting on hold plans to include the shares in its main emerging-market index.

    China is gradually opening its market for A shares — yuan-denominated domestic stocks listed on the Shanghai and Shenzhen stock exchanges. Quotas restrict access to A shares for foreign investors, but expansion of the quota system has accelerated in recent months, as China looks to liberalize its markets.

    MSCI began a consultation earlier this year about including A shares in its main emerging-market index, which has around US$1.3 trillion in assets benchmarked against it. But it put off those plans when some investors objected that access to the shares was limited.

    The A shares remain on review for a possible move to the emerging index in 2015.

    China, the world’s largest emerging market, is already the biggest component of the MSCI emerging market index. China’s current share of the index, however, is made up of domestic shares listed in Hong Kong, or H shares, and stocks listed in Shanghai and Shenzhen but denominated in U.S. or Hong Kong dollars, or B shares.

    The new China A International Index, as well as a new China All Shares Index, are designed for international investors with quotas for investing in the domestic yuan-denominated stock markets, MSCI said. (SD-Agencies)