Announcement for May 11, 2023 at 09:36 PM GMT
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
CHANGE IN LISTING OF ZAI LAB LIMITED AS PART OF THE MAY 2023 INDEX REVIEW
COUNTRY CODE CN
SECURITY NAME ZAI LAB (from ZAI LAB ADR)
TIMESERIE/MSCI CODE 116525/ 94623.01
ISIN KYG9887T1168 (from US98887Q1040)
SEDOL BP8L269 (from BD9GVY0)
SECURITY TICKER 9688 HK Equity (ZLAB UW Equity)
STANDARD MAINTAINED
LARGE CAP -
MID CAP MAINTAINED
GICS SUB-INDUSTRY 35201010 - Biotechnology
NUMBER OF SHARES 979,087,430 (from 97,908,743)
FIF 0.95
IIF 1.00
VIF 0.5
TYPE OF EVENT INDEX REVIEW
EVENT ID TBD
EFFECTIVE DATE June 01, 2023
STATUS INDEX REVIEW UPDATE
ZAI LAB LIMITED (Zai Lab) met the requirements for a change of listing from its ADR listing in the NASDAQ Global Market 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 2023 Index Review.
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 Zai Lab. The implementation is in line with previously implemented listing changes in the November 2022 Index Review and the May 2022 Index Review.
MSCI will proceed with below implementation for Zai Lab's change of listing:
- To reflect the listing switch, MSCI will maintain ZAI LAB ADR (MSCI Code: 94623.01) in the MSCI GIMI with a change in price currency to HKD, a change in identifiers (new Security Ticker: 9688 HK Equity), a change in share type to P-chip and a change in name to ZAI LAB effective June 01, 2023;
- MSCI will continue to use the closing price of ZAI LAB ADR (ZLAB UW Equity) until the close of May 31, 2023 and will start tracking the price of ZAI LAB (9688 HK Equity) on June 01, 2023;
- MSCI will apply a Price Adjustment Factor (PAF) to the market price of ZAI LAB (9688 HK Equity) on June 01, 2023 to reflect the conversion ratio between Hong Kong listing and ADRs of 10:1; accordingly, MSCI will increase the number of shares as of the close of June 01, 2023 (effective June 02, 2023).
Note that for the pre-open price of June 01, 2023, MSCI will use the closing price of ZAI LAB ADR (ZLAB UW Equity) on May 31, 2023. This would be adjusted with the USD/HKD WM/Reuters Closing Spot Rates taken at 4PM London on May 31, 2023 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 11, 2023. Please note that the pro forma tickers will be reflected in the MSCI product files only on May 31, 2023.
Furthermore, for indexes that exclude foreign listings such as the MSCI China ex Foreign Listing Indexes and the MSCI Hong Kong-Listed Southbound Indexes, the addition of Zai Lab, if applicable, will be represented by ZAI LAB (HK) (MSCI Code: 94623.02), effective on June 01, 2023, using its Hong Kong price as of the close of May 31, 2023. Effective from June 14, 2023, MSCI will change the security name and MSCI Code of Zai Lab in such indexes to ZAI LAB and 94623.01 respectively to align with the MSCI GIMI.
The listing switch of Zai Lab will also be reflected in relevant non-market capitalization weighted indexes in line with their respective parent indexes. For indexes where ZAI LAB (MSCI Code: 94623.01) will be added as part of the May 2023 Index Review, MSCI will use the May 31, 2023 closing price of ZAI LAB ADR (ZLAB UW Equity).
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
End of announcement.
Further announcements may occur as needed.
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