China securities regulator says to keep contact with global index companies

SHANGHAI (Reuters) – China’s securities regulator said Friday that it would keep in close contact with global index companies to facilitate the entrance of long-term capital into China’s stock market.

Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, told a news conference in Beijing that regulators will make it more convenient for foreign investors to invest in yuan-denominated A shares.

Earlier this week, FTSE Russell, one of the world’s largest index providers, said it will launch two transitional indexes that include China A shares – a staggered approach that will bring local Chinese shares into its global emerging markets benchmark in two to three years.

The FTSE announcement comes ahead of an upcoming June 9 decision on China A share inclusion by rival MSCI Inc <MSCI.N>, owner of the world’s most influential emerging markets benchmark against which some $1.7 trillion of funds is tracked.

(Reporting by Samuel Shen and Pete Sweeney; Editing by Kazunori Takada)