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FTSE Russell to remove more China stocks from indexes over US ban


FTSE Russell says it will drop more Chinese companies from its index lists. File photo: Reuters.

Index provider to drop 20 more Chinese companies after US President Joe Biden updates list of firms linked to Chinese military

 

(AF) Global index publisher FTSE Russell says it will delete a further 20 Chinese companies from its indexes after user feedback on an updated US Executive Order that bars US investment in companies with alleged ties to China’s military.

US President Joe Biden signed the order on June 3 that bans US entities from investing in dozens of Chinese companies alleged to have ties to defence or surveillance technology sectors, replacing an earlier order under Donald Trump.

In a statement on its website, FTSE Russell said the additional Chinese companies will be deleted from its indexes on July 28.

The decision was based on feedback from index users and stakeholders, it said.

Stocks to be removed include aerospace-related companies such as Aerospace CH UAV, Avic Aircraft, Avic Aviation High-Technology and Avic Heavy Machinery.

It also listed China Shipbuilding Industry, CSSC Offshore & Marine Engineering (Group), Inner Mongolia First Machinery Group.

The stocks will be removed from FTSE GEIS, the FTSE Global China A Inclusion indices and associated indices.

FTSE Russell has previously removed Chinese companies including Semiconductor Manufacturing International Corp and Hangzhou Hikvision Digital Technology Co from its indexes due to US sanctions.

With reporting by Reuters.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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