MSCI deleting 10 China firms from some indexes, retaining them in others – Reuters

Anil Panchal FXStreet

Early Wednesday morning in Asia, Reuters came out with an update suggesting the MSCI Inc. is to delete the securities of 10 Chinese companies from some global indexes after the US imposed restrictions on their ownership, but said it would also launch new versions of several indexes that retain the same securities.

The news mentions China Communications Construction Co., Hangzhou Hikvision and CRRC Corp. among the list of companies likely to be delisted.

“MSCI said it would remove the shares as of the close of business on Jan. 5. It said it would not remove securities from subsidiaries or affiliates of companies named in the order,” said the report.

FX implications

While the news highlights escalating tension between the US and China, global markets paid little heed to the news amid major attention to the US stimulus headlines. That said, AUD/USD looks for a clear direction near the multi-month high flashed earlier in the week.

Read: Progress was made on stimulus talks

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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