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, reports the South China Morning Post. The change to the MSCI China A Onshore Index, effective after the close on November 30, also removes 45 companies, MSCI said in a statement on its website on Tuesday night.
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 RMB 21 trillion ($2.9 trillion). It has dropped 7.8% 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.
