MSCI announced on Tuesday that it will remove 10 Chinese companies, including SMIC, from indexes such as the MSCI Global Investable Market because Chinese companies accused by the Trump administration of having links to the Communist Party’s military will influence transactions among financial institutions.
Are eliminated the MSCI, said companies include SMIC (SMIC), China’s transportation construction (CCCC), China’s space, China railway construction corporation, China in the car (CRCC), hikvision and CST dawn (Sugon), a total of 10 enterprises, such as eliminating these stocks index contains the MSCI world index (GIMI) investment market, related to the value of the weighted index, such as is expected to take effect after the close on January 5.
Is the decision of the government’s trump in mid-november for Chinese enterprises to issue executive orders, after the command americans are forbidden from investing in 31 by the United States that are associated with the Chinese communist party’s people’s liberation army (PLA) companies in China, this month and then SMIC, CNOOC (CNOOC), China Construction science and Technology (China Construction Technology) and China international engineering consulting (CIECC), 4 companies blacklisted, at present a total of 35 SBC.
MSCI said the move was based on feedback and comments from more than 100 market participants in the United States and elsewhere.
MSCI said many investors are concerned about “the broad influence of U.S. entities in their financial institutions, such as commercial banks, securities brokers and trusts, so The Trump order will continue to significantly restrict the business of financial institutions and affect the securities trading of related Chinese companies.”
More Chinese companies will be removed if the US further updates its defence blacklist, MSCI said, adding that it would publish new versions of its indices, such as those for emerging markets, which would retain the blacklisted Chinese companies.
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