MSCI to remove five Chinese firms from global index based on Trump order
Tue Jan 26 2021
Lucy Harlow (3602 articles)

MSCI to remove five Chinese firms from global index based on Trump order

MSCI Inc said it will remove five Chinese companies from its flagship global equity index as of the end of Jan. 27 in the absence of an update on a Trump administration order banning Americans from investing in certain Chinese companies.

The five companies – CGN Power Co, China National Chem, China National Nuclear Power, China Shipbuilding Industry and Inspur International – will be removed from the MSCI ACWI Index, relevant non-market capitalization weighted indexes and custom indexes.

MSCI said on Monday it will delete the securities if there is no fresh guidance from the Office of Foreign Assets Control (OFAC) by 12 p.m. ET on Jan. 26. OFAC is an agency within the U.S. Treasury department, which is responsible for enforcing sanctions.

President Joe Biden, who took office on Wednesday, is yet to spell out plans for Trump’s executive order forcing the divestment of the Chinese securities, but can easily revoke it.

Former President Trump had banned Americans from investing in Chinese companies that the Defense Department says have ties to the military, an assertion many of the companies deny and which China’s government has said lacks evidence.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe


Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.