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MSCI Inc. further trimmed Chinese stocks from its global benchmarks, underscoring the market’s diminishing appeal among investors despite a recent rebound.

The index compiler will axe 20 stocks from the MSCI China Index, following more than 200 removals last year. Eight new constituents will be added. The changes, effective after the close on Feb. 28, will also apply to the MSCI All Country World Index.

The quarterly revision comes at a crucial time for Chinese stocks. Optimism over DeepSeek’s artificial intelligence prowess has helped drive a bull run in tech shares, offsetting concern over Donald Trump’s tariff blow. While the MSCI China Index has rebounded about 15% since a January low, questions remain over the AI-driven rally’s sustainability.

The reduced weightings extend a yearslong trend, which saw Chinese stocks lose their dominance in global portfolios to emerging market rivals India and Taiwan.

Most of the Chinese stocks slated for removal this time are tied to the healthcare industry, including Asymchem Laboratories Tianjin Co., Bloomage Biotechnology Corp., Cathay Biotech Inc. and Jointown Pharmaceutical Group Co.

Among other notable changes, MSCI removed 11 stocks from the MSCI Korea Index while adding none. It culled nine from Japan and added one.