Announcement for May 12, 2022 at 09:21 PM GMT
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
CHANGE IN LISTING OF BAIDU INC AS PART OF THE MAY 2022 SEMI-ANNUAL INDEX REVIEW
COUNTRY CODE CN
SECURITY NAME BAIDU (HK) (from BAIDU ADR)
TIMESERIE/MSCI CODE 94293/ 68730.01
ISIN KYG070341048 (from US0567521085)
SEDOL B0J2D41 (from B0FXT17)
SECURITY TICKER 9888 HK Equity (BIDU UW Equity)
STANDARD MAINTAINED
LARGE CAP MAINTAINED
MID CAP -
GICS SUB-INDUSTRY 50203010 - INTERACTIVE MEDIA & SERVICES
NUMBER OF SHARES 2,234,373,424 (from 279,296,678)
FIF 1.00
IIF 1.00
VIF 1.00 (from 0.65)
TYPE OF EVENT QUARTERLY INDEX REVIEW
EVENT ID TBD
EFFECTIVE DATE June 01, 2022
STATUS INDEX REVIEW UPDATE
BAIDU INC (Baidu) met the requirements for a change of listing from its ADR listing in the NASDAQ Global Select to its ordinary-share listing in Hong Kong Exchanges and Clearing Limited (HKEX) in the MSCI China and relevant composite indexes in the MSCI Global Investable Market Indexes (GIMI) as part of MSCI's May 2022 Semi-Annual Index Review (SAIR).
As a reminder, according to section 3.1.2.4 of the MSCI GIMI Methodology, changes from a foreign listing to a local listing for existing index constituents will be applied in all cases where the local listing has a 12-month Annual Traded Value Ratio above two times the minimum level requirement of 15% for Emerging Markets.
MSCI will implement this listing switch for the MSCI GIMI indexes as a market neutral event to reflect the fungibility of the ADR and Hong Kong listings of Baidu. The implementation is in line with previously implemented listing changes in the May 2021 SAIR and the Nov 2021 SAIR.
MSCI will proceed with below implementation for Baidu's change of listing:
- To reflect the listing switch, MSCI will maintain BAIDU ADR (MSCI Code: 68730.01) in the MSCI GIMI with a change in price currency to HKD, a change in identifiers (new Security Ticker: 9888 HK Equity), a change in share type to P-chip and a change in name to BAIDU (HK) effective June 01, 2022;
- MSCI will continue to use the closing price of BAIDU ADR (BIDU UW Equity) until the close of May 31, 2022 and will start tracking the price of BAIDU (HK) (9888 HK Equity) on June 01, 2022;
- MSCI will apply a Price Adjustment Factor (PAF) to the market price of BAIDU (HK) (9888 HK Equity) on June 01, 2022 to reflect the conversion ratio between Hong Kong listing and ADRs of 8:1; accordingly, MSCI will increase the number of shares as of the close of June 01, 2022 (effective June 02, 2022).
Note that for the pre-open price of June 01, 2022, MSCI will use the closing price of BAIDU ADR (BIDU UW Equity) on May 31, 2022. This would be adjusted with the USD/HKD WM/Reuters Closing Spot Rates taken at 4PM London on May 31, 2022 and with the conversion ratio between Hong Kong listing and ADRs.
The above noted changes will be reflected in the Advance Corporate Events (ACE) files starting from May 13, 2022. Please note that the pro forma tickers will be reflected in the MSCI product files only on May 31, 2022.
Furthermore, for indexes that exclude foreign listings such as the MSCI China ex Foreign Listing Index, the addition of Baidu will be represented by BAIDU A (HK) (MSCI Code: 68730.03), effective on June 1, 2022, using its Hong Kong price as of the close of May 31, 2022. Effective from June 3, 2022, MSCI will change the security name and MSCI Code of Baidu in such indexes to BAIDU (HK) and 68730.01 respectively to align with the MSCI GIMI.
The listing switch of Baidu will also be reflected in relevant non-market capitalization weighted indexes in line with their respective parent indexes.
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
End of announcement.
Further announcements may occur as needed.
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