MSCI to Delete 10 Chinese Securities from Its Global Indexes under U.S. Pressure

MSCI to delete some Chinese securities from its global index following Donald Trump’s order to bar American companies and individuals from owning shares of Chinese firms that are suspected to be involved with Beijing military, the third major index provider to announce such a move.

 

The New York-based financial company MSCI announced on Tuesday (December 15) that about 10 China’s stocks will be removed from MSCI Global Investable Market Indexes (GIMI) effective at the close of businesses on Jan. 5, 2021, follows similar moves by S&P Dow Jones Indices, FTSE Russell and U.S.-based trading app Robinhood, as the soon-to-be-former President Trump has signed an executive order on November 12 that bans Americans from investing in 31 Chinese companies that support Chinese Army. 

 

MSCI cited that the removal was based on the decision of more than 100 market participants across the world. The companies to be removed include SMIC, China Communications Construction Co. and Hangzhou Hikvision. However, MSCI will launch parallel indexes that keep those deleted shares.