INDUSTRY BRIEF: MSCI culls more China stocks from its indexes
Stock index compiler MSCI Inc. said it will remove 60 Chinese stocks from its indexes, including 56 companies listed on China’s domestic A-share market and four listed in Hong Kong. The move is the third consecutive cull of Chinese stocks this year by MSCI, reflecting the “waning significance” of such stocks as China’s economy loses momentum, Asia Financial reported.
Major A-shares set for removal include Beiqi Foton Motor and People.cn, while China Tourism Group Duty Free and Ganfeng Lithium were among the Hong Kong stocks set for removal. The latest adjustment comes after MSCI removed another 122 Chinese stocks from its indexes in February and May. Companies from India, Japan and South Korea are expected to take greater weight in MSCI indexes with the removal of the Chinese stocks.
Writing by Doug Young
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