by HAN Li

MSCI Inc. has added 26 Chinese stocks and removed 20 from its flagship MSCI China Index in its November semiannual review, effective after trading closes on Nov. 24. The reshuffle is part of a broader global adjustment involving 69 additions and 64 deletions across MSCI’s standard index series.

The MSCI China Index, tracked by billions of dollars in global assets, is a key benchmark for investors in Chinese equities. Inclusion typically attracts short-term inflows from index-tracking funds, while removals often trigger selling pressure.

New constituents include gold miners, chipmakers and lithium producers such as China Gold International Resources, Hua Hong Semiconductor and Ganfeng Lithium, reflecting a tilt toward resource and high-tech sectors amid China's industrial upgrade drive. Traditional consumer and healthcare names were among those dropped.

Analysts said the immediate price impact of MSCI rebalances is usually limited, though trading volumes tend to spike near the effective date as passive funds adjust holdings. The latest reshuffle highlights how China's changing industrial structure continues to shape its weight in global benchmarks, even as foreign investor sentiment toward mainland assets remains cautious.

Chinese ETFs tracking MSCI indexes have mostly posted gains this year, with 25 funds up more than 20% despite continued outflows. Fund managers said large-cap, high-quality stocks in sectors such as finance, advanced manufacturing and new energy remain central to China's long-term equity story.

The MSCI review comes ahead of upcoming adjustments to the FTSE China A50 and CSI 300 indexes in December, signaling continued realignment as global investors recalibrate exposure to Chinese equities.