MSCI has released the results of its quarterly index review for February 2026. The MSCI China Index will see 37 new additions, including PONY-W (02026), Baiyin Nonferrous Metals (601212.SH), and Leo Group Co., Ltd. (002131.SZ), spanning sectors such as technology, energy, and finance. Conversely, 16 stocks have been removed from the index. These changes will take effect after the market close on February 27.

As a key benchmark tracked by global passive funds, the newly added constituents are expected to see passive fund inflows around the effective date of February 27, while the removed stocks are likely to face selling pressure. Among the new additions, four are Hong Kong-listed stocks: PONY-W, SENSETIME-W (00020), and HESAI-W (02525). These three companies collectively represent the core technological chain of autonomous driving, encompassing perception, decision-making, and execution. YOFC (06869) represents the new-generation communication infrastructure essential for supporting vehicle-road coordination, real-time transmission of high-definition maps, and cloud computing resource scheduling. This adjustment clearly signals international capital's recognition of China's strategic advancements and growth in fields such as artificial intelligence, the autonomous driving supply chain, and new infrastructure investments.

MSCI stated that this quarter's adjustments primarily reflect evolving market dynamics and are intended to further enhance the market representation and liquidity of the MSCI China Index. The inclusion of stocks from multiple sectors indicates a move towards greater diversification within the index. The 16 stocks removed primarily involve traditional real estate, financial, and automotive industries, including Zhejiang Expressway (00576) and China Communications Services Corporation Limited (00552).