MSCI is set to reduce China’s representation in its indexes by removing 60 companies from the MSCI China Index this month. This follows previous deletions of 56 stocks in May and 66 in February, marking the largest removals in at least two years. As of late July, China accounted for 22.33% of the Emerging Markets Index.
The substantial reduction in China’s index weight could potentially increase the relative weight of other emerging markets, such as India and Taiwan. This move reflects ongoing adjustments in the index provider’s assessment of the Chinese market and its impact on the broader emerging markets benchmark.
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