MSCI removes China Tourism, 59 more Chinese stocks as global investors turn to India

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Other big names to be ejected from the MSCI indices include Beiqi Foton Motor, Ganfeng Lithium Group and GF Securities

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Global index compiler MSCI has removed close to 200 Chinese stocks from its gauges this year amid depressed sentiment prevailing on China’s stock market. Photo: Bloomberg

Zhang Shidongin Shanghai

Published: 5:00pm, 13 Aug 2024

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.

Fifty-six companies trading on China’s onshore exchanges and four in Hong Kong will be removed from the MSCI China Index at the end of August, MSCI said in a statement on Monday.

The biggest yuan-traded stocks on the A-share market that are set to be ejected include carmaker Beiqi Foton Motor and state-backed media and advertising firm People.cn, while Hong Kong-listed duty-free shop operator China Tourism Group Duty Free, Flat Glass Group, Ganfeng Lithium Group and GF Securities will also be removed, according to the statement.

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.