MSCI Drops Major Chinese Firms, Risking Further Stock Selloff
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MSCI is removing 66 companies from its flagship MSCI China Index, which tracks Chinese equities. This could trigger more fund outflows from Chinese stocks.
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The deletions include major Chinese companies across sectors like property, tech, consumer goods, and finance.
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MSCI's indexes are widely followed by institutional investors globally. The changes could affect the weighting of Chinese stocks in global portfolios.
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China's stock market has lost $6 trillion in value recently amidst economic challenges like property downturn, unemployment, and falling birth rate.
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Beijing has tried supporting measures to stem the multi-year market rout, but doubts persist about authorities' willingness for large-scale intervention.