Infrastructures of Power: Index Providers and the Politics of China’s Financial Globalization

Details

Supervisors

Duterme, Tom

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [60] en sciences économiques, orientation générale

Abstract

enThe paper investigates the evolving relationship between global index providers, particularly MSCI, and China within the context of financial globalization and infrastructural power. The rise of passive investing has transformed index providers into powerful private authorities capable of steering capital flows by determining how investment is allocated through their indices. Traditionally, index inclusion has been associated with the diffusion of liberal standards, incentivizing countries to liberalize their financial markets in exchange for greater capital inflows. However, the case of China demonstrates a more complex dynamic: one marked by negotiations and mutual concessions. China strategically engages with index providers to attract foreign capital without compromising state control over its financial system. It has instrumentalized its financial infrastructure—such as Stock Connect and domestic indices like the CSI 300—to stabilize markets, professionalize its financial sector, and internationalize the renminbi. At the same time, index providers have accommodated China’s constraints in order to satisfy investor demand and preserve market relevance. The findings suggest that rather than a top-down diffusion of liberal norms, China’s financial integration reflects a process of negotiated globalization.