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Global Times: MSCI to Remove Seven Chinese Stocks from Its Indexes

Global Times recently reported that the world’s largest stock index company MSCI announced that, after the market closes on January 5, it will remove seven Chinese companies from its indexes. Earlier, S&P Dow Jones Indexes and FTSE Russell already made similar moves. This is following U.S. President Donald Trump’s having issued an executive order to ban U.S. investment in 31 military-tied Chinese companies. The impacted stocks hold a share of 0.04 percent in the MSCI ACWI Investable Market Index and 0.28 percent in the Emerging Market Index. China says this shows the U.S. hegemony in capital markets. (Editor’s note: MSCI indexes are often used to allocate elements in major U.S. funds automatically, such as pension funds and other retirement funds).

Source: Global Times, December 17, 2020