MSCI removes China Tourism, 59 more Chinese stocks as global investors turn to India
- Other big names to be ejected from the MSCI indices include Beiqi Foton Motor, Ganfeng Lithium Group and GF Securities
Global index compiler MSCI will remove 60 Chinese stocks from its gauges in its latest quarterly review, the third straight cull this year, reflecting the waning significance of the nation’s equities in overseas investors’ portfolios.
These changes will also apply to the MSCI Emerging-Markets Index and the MSCI All Country World Index, the statement said. At the end of July, Chinese stocks, both onshore and offshore, accounted for roughly 22 per cent of the weighting of MSCI’s emerging-market gauge.
In the May review, 56 stocks were removed, while the same fate befell 66 equities in February.
The rebalancing underscores Chinese stocks losing favour with global investors as they have been underweight on these shares over the past few years amid curbs on technology companies and a persistent property market crisis.
The MSCI China Index has risen 1 per cent this year, erasing most of the gains made earlier in the year after a flurry of state intervention aimed at supporting the onshore market. The benchmark has underperformed a 4.4 per cent gain in the MSCI Emerging-Markets Index and an 18 per cent advance in the MSCI India gauge.