TMTPOST -- MSCI Inc. has further reduced its inclusion of Chinese stocks in its global benchmarks, reflecting the market’s diminishing appeal among investors despite a recent rebound. The index provider will remove 20 stocks from the MSCI China Index, following more than 200 removals last year. Eight new stocks will be added to the index. The changes, which take effect after the market close on February 28, will also apply to the MSCI All Country World Index. This quarterly revision comes at a pivotal moment for Chinese stocks, with optimism surrounding DeepSeek’s artificial intelligence breakthroughs driving a bull run in tech shares, helping to offset concerns over the tariff impact from Donald Trump’s policies. Despite a 15% rebound in the MSCI China Index since its January low, questions persist about the sustainability of the AI-driven rally. The reductions in Chinese stock weightings continue a years-long trend where Chinese stocks have lost their dominance in global portfolios, with emerging market rivals such as India and Taiwan gaining ground. Most of the stocks set to be removed this time are linked to the healthcare sector, including companies like Asymchem Laboratories Tianjin Co., Bloomage Biotechnology Corp., Cathay Biotech Inc., and Jointown Pharmaceutical Group Co.