Quick Take: China A-shares Suspensions Drop to All-Time Low
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Suspensions of China A-Shares have decreased dramatically to historical lows.
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This follows updates and clarifications of suspension conditions and protocols from the Shanghai and Shenzhen Stock Exchanges over the past two years.
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Index providers have taken notice, and we believe the reduction increases the likelihood of additional A-shares inclusion in major EM benchmarks in 2019.
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The decrease in suspensions continued in 2018, despite a rebound in A-shares volatility from 2017 lows.
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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
![China A-shares suspensions drop to all-time low Figure 1](/au/-/media/images/viewpoints/quick-take/china-a-shares-suspensions-drop-to-all-time-low/figure-1.png?h=664&w=1253&hash=7EE42368CF1F12713C14BAC3625BBC4C)
Realized Volatility: MSCI China A Onshore Index (net, USD)
![China A-shares suspensions drop to all-time low Figure 2](/au/-/media/images/viewpoints/quick-take/china-a-shares-suspensions-drop-to-all-time-low/figure-2.png?h=424&w=1149&hash=36D2444BFBF68E10FF44212F956C71AE)
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