China market meddling risks denting Beijing's international ambitions
* China wants inclusion in MSCI's Emerging Market Index
* Beijing using monetary policy, regulation to stem market slide
* Market down nearly 30 pct since mid-June
By Lawrence White and Saikat Chatterjee
HONG KONG, July 3 (Reuters) - China's response to wild swings in its stock markets risks an embarrassing setback to the country's push to internationalize its financial system, according to investors.
Two weeks of panic selling in China's stock markets has prompted largely ineffective lever-pulling by Chinese authorities, who have launched a raft of measures aimed at stemming the volatility.
Investors say constant tinkering with monetary policy and regulation to try to temper the stock market slide raises wider questions about whether China is ready to open up its capital markets and have more influence in the international financial system.
"The psychology of the Chinese authorities is to control things, but opening up capital markets requires them to lose a lot of control," said Charlie Awdry, China fund manager at Henderson Global Investors.
The near-30 percent stock market plunge comes as Beijing is lobbying for its domestic shares to be included in top global share indices such as MSCI Inc's Emerging Markets Index and for the yuan to be in the International Monetary Fund's basket of currencies. Continuación...