MSCI Inc., based in Hong Kong, has authorized the removal of MGM China Holding from its benchmarking platform. MSCI, the world’s largest index provider, announced the move last week during its semi-annual index review.
The company didn’t give a reason why it authorized the removal of MGM China from the Hong Kong gauge, but announced the removal to be effected after the closure of the Asian market on 26th November.
By the end of October, MSCI serviced 47 companies’ shares, which represent about 85 percent of Hong Kong-listed companies in the stock market. The removal of MGM China means that the company won’t be able to track active managers and will be prompted to sell shares to casino operators to remain in line with its objectives.
MSCI isn’t removing any other gaming stock from its benchmarking platform. Galaxy Entertainment Holdings, Sands China, Melco Resorts and Wynn Macau are still in the gauge. The four companies have a combined 6.65 percent on the MSCI Hong Kong Index. There is a possibility that MGM China was removed to pave the way for Chinese e-commerce giant-Alibaba. The company is enlisting in Hong Kong market with $11 billion, which will make it relevant to be added to MSCI Index.
Casino.org reported that the shares of MGM China may find a new home in Macau. A special Administrative Region (SAR) has been trying to diversify the gaming economy and plan to open a stock exchange in Macau.
In Macau, a good number of companies involved in the casino aren’t traded publicly. Thus it’s reasonable to expect that a stock market will come to life there, which will feature all gaming entities, including MGM China.