Global equity indexes provider MSCI announced Tuesday that it will delay including China A-shares in the MSCI Emerging Markets (EM) Index.

In its 2016 market classification review released Tuesday, MSCI said that Chinese authorities have introduced significant improvements in the accessibility of the China A-shares market for global investors in recent months, but "investors would like to see further improvements in the accessibility of the China A-shares market before its inclusion."

The completed improvements, which touched the major issues previously cited as obstacles to inclusion, include resolution of the issues regarding beneficial ownership, enhanced regulations on trading suspension and QFII (Qualified Foreign Institutional Investor) policy changes aimed at addressing quota allocation and capital mobility restrictions, according to the review.

"There have been significant steps toward the eventual inclusion of China A shares in the MSCI Emerging Markets Index," said Remy Briand, MSCI managing director and global head of Research. "They demonstrate a clear commitment by the Chinese authorities to bring the accessibility of the China A-shares market closer to international standards."

Meanwhile, international investors brought up several issues that need further improvements, namely the 20-percent monthly repatriation limit and the local exchanges' pre-approval restrictions on launching financial products.

MSCI said it will retain the China A-shares inclusion proposal as part of the 2017 Market Classification Review and it does not rule out a potential off-cycle announcement, should further significant positive developments occur ahead of June 2017, the review said.