MSCI China A-share gauge to get 10 new stocks including nuclear generator CGN, chip maker Empyrean, as industrials pared
- The review also removes 45 companies as the index compiler reflects China’s drive towards technology self-reliance
- Additions include Shanghai United Imaging, semiconductor equipment maker ACM Research and data-centre provider Range Intelligent Computing
Ten Chinese companies including nuclear power generator CGN Power, medical equipment maker Shanghai United Imaging Healthcare and chip designer Empyrean Technology will join MSCI’s gauge that tracks yuan-denominated onshore stocks.
Most of the deletions are industrial companies, as the global index compiler’s rebalancing reflects China’s drive towards technology self-reliance.
The index currently tracks 796 mainland-traded companies with a combined market value of 21 trillion yuan (US$2.9 trillion). It has dropped 7.8 per cent this year through Tuesday, as China has refrained from introducing dramatic stimulus measures with Beijing pursuing sustainable, quality growth by focusing on technology innovation and consumption.
MSCI also unveiled the results of reviews of the MSCI China All Share Indexes, the MSCI Frontier Market Indexes and the MSCI Global index series of small-capitalisation stocks and investible markets. The MSCI China Index, the most popular gauge of both onshore and offshore stocks tracked by passively managed global funds, is not subject to rebalancing this time.
