If MSCI’s so great, why are China stocks down?

Down for the count: Investors at an electronic stock board at a securities brokerage in Shanghai. Is China on track for record corporate defaults this year? — Bloomberg

APPARENTLY, inclusion in MSCI Inc’s equity indexes isn’t enough.

China’s not a place that shies away from front-running concepts, with people often buying shares ahead of a major event. So why then, if billions of dollars in foreign money is about to flow into more than 200 newly included Chinese share counters, are stocks in Shanghai and Shenzhen doing so badly? The CSI 300 Index is down 5.7% this year, lagging South Korea, Hong Kong and Japan.