Chinese Stocks Aren’t Normal—Whatever MSCI Thinks

Mainland-listed shares will enter MSCI’s key benchmarks, but that won’t resolve the problems with China’s markets

By

Global investors are about to get a larger dose of Chinese stocks in their portfolios. But as Big Bangs go, this one has a pretty low decibel count.

Any sentient market-watcher has known for about a year that index provider MSCI will include stocks listed in mainland China in its benchmarks starting June 1. On Tuesday, it published a roster of the more than 200 Chinese companies listed in Shanghai and Shenzhen that will be the first to enter these hallowed portals.

...