Israel Defies Trump's Warning, Launches New Strikes on Iran Amid Growing Global Energy Crisis 
Amazon's "Transformer" Phone: Can It Succeed Where Fire Phone Failed? 
SLMG Beverages Eyes Price Hikes Amid Rising Packaging Costs and India's Booming Soft Drink Market 
GE Vernova and Hitachi's $40 Billion SMR Investment Signals a New Era for U.S. Nuclear Energy 
Federal Reserve Crisis: DOJ Standoff Threatens Powell's Succession and Rate Stability 
US-Iran War: Trump Eyes Military Exit as Markets React to Potential De-escalation 
Netflix Eyes South Korea for More Live Events as BTS Concert Livestream Approaches 
Asian Currencies Slide as U.S.-Iran Tensions and Rising Oil Prices Rattle Markets 
Paraguay Central Bank Holds Interest Rate at 5.5% Amid Slowing Growth 
Iran-U.S. War Sends Dollar Higher as Middle East Tensions Escalate 
U.S.-Iran War Escalates: Marines Deploy, Strait of Hormuz Closure Drives Global Oil Crisis 
Goldman Sachs Delays Bank of England Rate Cut Forecast Amid Middle East Inflation Risks 
South Korean Stocks Tumble as Hawkish BOK Governor Appointment Rattles Markets 
U.S. Appeals Court Strikes Down FTC Order Against TurboTax "Free" Advertising 
Japan Eyes Reduction in Inflation-Linked Bond Buybacks Amid Surging Investor Demand 
Asian Markets Mixed as Oil Volatility and Inflation Fears Weigh on Sentiment 
J.P. Morgan Now Expects Two ECB Rate Hikes Amid Inflation Pressures 
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.
