Takara Global - Stock index compiler, MSCI Inc. has indicated that China’s attempts to contain the rout on its stock market have hurt the nation’s chances of getting its top shares included in MSCI’s global indexes.

MSCI is urging Chinese financial authorities to commit to a policy of non-intervention in the event of another sell-off in the future.

MSCI is set to embark on a fresh round of talks before deciding in June whether or not to include mainland Chinese stocks in its benchmark index. The company held off on taking that step last year after a sharp sell-off wiped $5 trillion off the value of the world’s second-biggest equity market.

The Chinese authorities’ reaction to the sell-off included allowing half the companies listed on the Shanghai and Shenzhen Composite exchanges to voluntarily suspend trading in their shares and pressuring brokers, insurers and pension funds to step in to buy stocks.

“Allowing Chinese stocks to be represented on their indexes could severely jeopardize MSCI’s credibility,” said a Takara Global researcher. “If the Chinese authorities want their stocks listed on MSCI’s indexes, they are going to have weigh the importance of that listing for its shares against the need to demonstrate to retail investors that they can somehow prevent stocks from falling too far.”

China was still recovering from last year’s selloff when the global equity volatility that hit markets this January dealt another blow to its stocks.

The Shanghai Composite is off 15% in 2016, the largest decline among benchmarks for major markets around the world.