NEW YORK, 26 January, 2021 (TON): Morgan Stanley Capital International (MSCI) to remove five Chinese firms from global index on Donald Trump orders.

MSCI Inc said it will remove five Chinese companies from its flagship global equity index as of the end of 27th January, 2021, as an update on Trump administration order banning Americans from investing in certain Chinese companies.

The five companies - CGN Power Co, China National Chem, China National Nuclear Power, China Shipbuilding Industry and Inspur International - will be removed from the MSCI ACWI Index, relevant non-market capitalization weighted indexes and custom indexes.

On Monday, 25th January, 2021, MSCI stated if there is no fresh guidance from the Office of Foreign Assets Control by 1200 hours on January 26, 2021, it will delete the securities.

The agency within U.S. Treasury Department, OFAC is responsible for ensuring sanctions.

President Joe Biden, who took office on Wednesday, is yet to spell out plans for Trump’s executive order forcing the divestment of the Chinese securities, but can easily revoke it.