Suspensions of China A-Shares have decreased dramatically to historical lows.
This follows updates and clarifications of suspension conditions and protocols from the Shanghai and Shenzhen Stock Exchanges over the past two years.
Index providers have taken notice, and we believe the reduction increases the likelihood of additional A-shares inclusion in major EM benchmarks in 2019.
The decrease in suspensions continued in 2018, despite a rebound in A-shares volatility from 2017 lows.
Although we still see suspensions as a material risk, the recent trend in suspensions represents a positive step toward the alignment of A-shares with international institutional standards.
China A-shares Suspensions
Realized Volatility: MSCI China A Onshore Index (net, USD)
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