MSCI, a widely-followed global index provider, said on June 14 it was not adding China’s local-currency shares to its benchmark emerging markets index, a fresh setback for China’s efforts to join international markets.

The inclusion of China's local-currency shares, known as A shares, had been widely anticipated by global investors and Wall Street. It was expected to bring tens of billions of dollars into China's stock market at a time when its economy is cooling and capital is fleeing. The MSCI Emerging Markets Index is tracked by money managers with some $1.5 trillion of assets.