MSCI to Delete Chinese Cos. From GIMI Indexes

The transcript discusses the feedback received by MSCI from over 100 clients, expressing concerns about exposure to certain Chinese companies due to a US executive order. This order, signed by Trump, bans US investments in companies linked to the Chinese military. As a result, MSCI is removing ten securities from its global investable market index. Other index compilers like Footsie Russell and S&P Dow Jones are also reviewing their indexes. The US aims to prevent funds from supporting companies posing security risks, while China opposes these measures and may retaliate. Companies like SMIC argue their products are for commercial use only.

What rationale does the US administration provide for restricting investments in certain Chinese companies?

How has China responded to the US measures regarding investment restrictions?