Honda Leadership Crisis Deepens as Retired Executives Challenge CEO Toshihiro Mibe’s Strategy 
Frasers Group Launches €2 Billion Hugo Boss Takeover Offer Amid Control Speculation 
BHP Port Hedland Workers Back Strike Action Amid Pay Dispute 
Roku Explores Sale Options as Interest Grows in Streaming and Ad Business 
Astera Labs and Rocket Lab Surge After Nasdaq-100 Inclusion Announcement 
New Zealand Manufacturing Slips Back Into Contraction in May 
Asics Considers Onitsuka Tiger Spinoff as Luxury Sneaker Brand Expands Globally 
US Stock Futures Rise on Iran Peace Deal Hopes as SpaceX Debuts After Record IPO 
Exxon Mobil Set to Appoint Alex Volkov as Global Trading Chief 
Oil Prices Fall as Trump Signals Iran Deal, Reducing Supply Risk Concerns 
US Dollar Heads for Weekly Loss as Iran Peace Deal Hopes Boost Risk Appetite 
European Stocks Rise Ahead of ECB Rate Decision as Investors Buy the Dip 
GSK Reportedly Nears $9 Billion Acquisition of Cancer Drug Developer Nuvalent 
Japan Core Inflation Seen Steady in May Ahead of BOJ Rate Hike 
Asian Stocks Slide as Tech Selloff Deepens and US-Iran Conflict Escalates 
Dollar Stabilizes as Markets Weigh Middle East Ceasefire Prospects and Central Bank Policy Outlook 
Alibaba Offers $1.5 Billion to Acquire Grocery Delivery Platform Pupu 
MSCI Inc. revealed this week that it will be pulling out five Chinese companies from its global equity index. The American finance company headquartered in New York City stated that the removal will begin on Jan. 27 since there is no update from the government regarding Donald Trump’s executive order that banned the Americans from working or doing business with Chinese firms.
Chinese companies to be eliminated from MSCI’s global index
As per Reuters, the Trump administrations’ executive order 13959 that was signed in November of last year is still in effect. Thus, since there is no update from the current administration or advice on the Office of Foreign Assets Control (OFAC)regarding the application of the executive order, MSCI will push through and abide by the EO.
The five companies that MSCI is taking out from its global index listing include the CGN Power Co., China National Nuclear Power, China National Chem, China Shipbuilding Industry and Inspur International.
These will be removed from MSCI’s custom indexes, ACWI Index and other relevant non-market capitalization-weighted indexes. The announcement was made earlier this week and the finance company affirmed that it will be removing the said firms if they don’t receive and new guidance from the OFAC by 12 p.m. on Jan. 26.
Trump’s order that led to the removal of Chinese companies in major financial listings
The Executive Order 13959 was announced in November 2020 and it was stated in this order that American individuals or groups are prohibited from investing in Chinese companies. Trump said that his order was implemented because many Chinese businesses support the Chinese military that is a big threat to the U.S.
This is why many financial companies were forced to get rid of the companies owned by China citizens. In fact, Regulation Asia noted that FTSE Russell is also considering the removal of the said five companies from its equity indexes.
Almost all major American index providers have already informed the public about their plans to drop Chinese due to the EO 13959. Investment banks have also started delisting businesses and around 500 Hong Kong-listed structured products were affected.
