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 was the main concern of MSCI's clients regarding certain Chinese companies?

• Exposure to companies linked to the Chinese military

• Lack of market growth

• Potential financial losses

• High investment fees

Which of the following companies was mentioned as being removed from MSCI's global investable market indexes?

• Baidu

• Hikvision

• Tencent

• Alibaba

What action did other index compilers like FTSE Russell and S&P Dow Jones take in response to the executive order?

• They filed a lawsuit against the US government

• They ignored the executive order

• They removed certain companies from their indexes

• They increased their investment in Chinese companies

How did China respond to the US executive order regarding investment in certain companies?

• By seeking diplomatic negotiations

• By increasing trade tariffs

• By publishing their own blacklist of US companies

• By agreeing to the US terms

What is the primary focus of the semiconductor company SMIC, according to the transcript?

• Automotive industry

• Consumer electronics

• Commercial use

• Military applications