MSCI to Remove Some Chinese Companies From Indexes -- Update

By Josh Beckerman

MSCI Inc. plans to delete the securities of the Chinese companies referenced in President Trump's Nov. 12 executive order from its Global Investable Market Indexes, after it conducted "extensive outreach with the global investment community."

The order bars Americans from investing in 31 Chinese companies that the U.S. says support China's military, intelligence and security services. Index compilers including MSCI said they would assess the blacklist.

The MSCI deletions, which are scheduled for Jan. 5 after market close, include Semiconductor Manufacturing International Corp., China Communications Construction Co., China Railway Construction Corp. and CRRC Corp.

The list also includes China Spacesat Co., Hangzhou Hikvision Digital Technology Co. and Dawning Information Industry Co.

This month, FTSE Russell said it would remove securities of eight Chinese companies from the FTSE Global Equity Index Series, the FTSE China A Inclusion Indexes and other associated benchmarks. S&P Dow Jones Indices said certain securities "will be deemed ineligible for S&P DJI equity indices."

MSCI said it seeks to "ensure that its indexes remain investable and continue to represent the performance of the opportunity set available to international institutional investors."

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

December 15, 2020 18:02 ET (23:02 GMT)

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