MSCI Removes 38 Securities From China Index, Keeps Restrictions on Indonesian Stock Changes
Key Facts
MSCI announced the results of its November equity index review on November 11, removing 38 securities from the MSCI China Index and adding 3. The review list shows that the deletions included names from mainland Chinese and Hong Kong stocks, as well as a U.S. depositary receipt. The review also removed two stocks from the MSCI Indonesia Index and added none. The changes take effect at the close on November 30, setting the date on which they will be applied to the indexes tracked by investment portfolios. MSCI said the review was based on data through the price cutoff date of October 20.
The additions to the MSCI China Index included Huadian New Energy A, Yunnan Lincang A and Zhongji Innolight H. By contrast, the deletion list included China Feihe, Ganfeng Lithium Group H and Legend Biotech ADR. This puts China at the top of the MSCI Global Standard list for November deletions, while the net change within the China index reflects the combination of additions and deletions. The figures apply to the MSCI China Index and do not mean these securities were removed from all MSCI global indexes. The list presents changes at the level of the securities covered by the index review.
In Indonesia, the MSCI Indonesia Index deletion list included Barito Pacific and Bumi Resources Minerals, with no additions in this review. These specific changes come as broader restrictions that MSCI said it was applying to the Indonesian market remain in place. The restrictions include no increases to foreign inclusion factors or share counts, no additions to the MSCI Indonesia IMI, and no upgrades of stocks to higher size segments. In a July 6 update, MSCI announced a freeze on increases to foreign inclusion factors and share counts, along with a halt to additions to investment indexes and upgrades between size segments. The November review therefore combines the deletion of two stocks from the Indonesian index with the continuation of restrictions on other types of changes.
MSCI linked its proposal to reclassify Indonesia to its continuing concerns about what it described as a market dysfunction. The company said its concerns include continued suspicions of coordinated trading activity and a lack of evidence of enforcement with a tangible impact. This issue is separate from the November review results on stock additions and deletions; the removal of two stocks alone does not resolve the market’s classification status. MSCI has said that markets classified as standalone are not included in its emerging-market or frontier-market index products. Passive funds track those indexes, and other fund managers use them as performance benchmarks. Investors are watching the outcome of consultations on the proposal alongside the implementation of the announced index changes.
The review results were preceded by sharp market turmoil in Indonesia during the October 16 session. The benchmark index fell 11% to a six-year low, while the rupiah weakened 0.6% to 18,070 against the dollar, its weakest level since late July. A wave of selling at the market open prompted a 30-minute trading halt on the Jakarta Stock Exchange, Reuters reported. UBS estimated at the time that the proposed reclassification could trigger about $4 billion in passive outflows, with a further $15 billion potentially leaving from active investors. As of the report published on October 16, net foreign investor sales of Indonesian stocks totaled $4.7 billion in 2026.
The possibility of a downgrade has prompted debate between Indonesian authorities and MSCI. Economy Minister Airlangga Hartarto said there was a “big question mark” over MSCI’s failure to discuss downgrading the country to standalone market status during that week’s meeting in Bangkok. The issue matters to investors because a market’s classification determines its inclusion in index products used to track emerging and frontier markets. MSCI has said standalone markets are excluded from those products, which passive funds track and other fund managers use as performance benchmarks. As for next steps, MSCI said it would keep the Indonesian freeze in place until further notice. It added that it expects to proceed with the reclassification proposal unless consultations show clear evidence of substantial improvement.