MSCI , the New York-based global index compiler, will add some of mainland’s red-hot and best-performing stocks to its index that track China’s onshore markets and remove some underperformers in the latest quarterly review. Semiconductor Manufacturing International Corp (SMIC), China’s biggest chip maker, Wangfujing , the Beijing-based department store operator that recently won the franchise to run duty-free shops, and other five companies will join the MSCI China A Onshore Index in September, MSCI said in a statement. Meanwhile, China High-Speed Railway Technology and Realcan Pharmaceutical Group will be removed from the gauge, it said. The index compiler will also revamp the MSCI China All Shares Index by adding nine stocks and taking off one. Investment themes linked to hi-tech and consumption have become popular with traders this year. SMIC has surged 174 per cent from its offer price since the chip maker began trading on Shanghai’s new technology board last month, as Chinese policymakers ramp up support for the nation’s home-grown technology amid escalating disputes with the US. Shares of Wangfujing have more than quadrupled this year on optimism that cheaper luxury goods sold from the duty-free shops will boost consumer spending. In contrast, shares of China High-Speed and Realcan Pharmaceutical have retreated at least 12 per cent in 2020. MSCI, whose indices are tracked by global funds with estimated assets of about US$10 trillion, competes with the Shanghai and Shenzhen exchanges, which compile China’s benchmark Shanghai Composite Index and other gauges including the CSI 300 Index and the ChiNext index. This rivalry comes at a time when overseas investors increase their exposure to the mainland-traded stocks amid the further opening up of the world’s second-largest equity market. “We have also seen an increased focus on quality and longer-term growth prospects when selecting stocks from onshore equity portfolio managers,” wrote Rachel Wang, director of manager research at Morningstar, in report. HKEX to offer MSCI derivatives, replacing Singapore as index provider’s Asia derivatives hub Other stocks that will be added to the MSCI China A Onshore Index are China Zheshang Bank, Intco Medical Technology, National Silicon Industry Group, Shanghai Bairun Investment Holding Group and Xiamen Kingdomway Group, according to MSCI’s statement. The 713-member index of Chinese onshore stocks had gained 18 per cent this year through Wednesday. Liquor giant Kweichow Moutai, Ping An Insurance Group and China Merchants Bank have the biggest weightings on the gauge. MSCI first added Chinese equities to its global benchmarks in 2018 after rejecting the proposal three times, and has quadrupled the stocks’ representations since then. Chinese onshore stocks now account for 4.1 per cent of the weighting in the MSCI Emerging Markets Index .