Equity index giant MSCI is starting to track Alibaba’s Hong Kong stocks instead of US stocks

The signage for Alibaba Group Holding Ltd. covers the facade of the New York Stock Exchange on November 11, 2015.

Brendan McDermid | Reuters

BEIJING – Stock index giant MSCI announced on Wednesday that it was removing US-listed Alibaba stocks from its global indices and replacing them with Hong Kong-traded Alibaba stocks.

The move, which is due to take effect after trading closes on May 27, could result in the trillion dollars tracking these indices out of US trading volume for Alibaba’s Hong Kong shares, a fraction of what was quoted in New York Represents stocks.

The affected indices include the MSCI Emerging Markets benchmark index, which many institutional investors use to determine how to invest outside of the US, Europe and Japan.

A representative from Alibaba did not immediately respond to a request for comment.

When the technology giant founded by the Chinese billionaire Jack Ma was listed in New York in 2014, it was the largest IPO at the time.

Chinese startups have since moved to the US despite political tensions. Amid growing concerns over a possible deletion of Chinese stocks on US stock exchanges, major companies like Alibaba and JD.com have double-listed Hong Kong over the past two years.

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