What’s new: Global index provider MSCI Inc. plans to add 17 and drop 13 China stocks from two of its widely followed equity indexes, the company said.
One of the losers, Hong Kong-traded Haichang Ocean Park, a Shanghai theme park operator, plunged 10% in early-morning trading Friday on news it will fall out of the MSCI China All Shares Index in the quarterly revision. All of the changes will be implemented at the close of trading Feb. 28, MSCI said.
The adjustments involve removals and additions to most of its major indexes tracking global equity markets, including the MSCI Global Standard Indexes, MSCI U.S. Equity Indexes and two China-related indexes.
There will be 10 additions to and five deletions from the MSCI China A Onshore Index, according to the company. The three largest additions will be Hainan Airlines Holding A, Hainan Airport Infrastructure A and Offcn Education Technology A.
In the MSCI China All Shares Index, there will be seven additions and eight deletions, the company said.
The context: MSCI’s indexes are widely followed by global equity investors for investment decisions. Changes to the indexes often lead to fluctuations for the affected stocks.
The MSCI All Country World Index, its flagship index, includes large- and mid-cap stocks from 23 developed and 24 emerging markets, with total market capitalization exceeding $60 trillion at the end of last month, according to the company. The MSCI China Indexes currently consist of 713 stocks across China A shares, H shares, B shares and foreign listings, covering about 85% of the China equity universe.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@ caixin.com)
Get our weekly free Must-Read newsletter.
