Chinese Telecom Firms Lose $5.6 Billion in Value as Index Providers Drop Them

A sign of China Unicom is seen on a street, during the COVID-19 pandemic in Shanghai, China, on Jan. 8, 2021. Aly Song/Reuters

SINGAPORE—Index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices said they would cut three Chinese telecom companies from benchmarks, part of a widening fallout from a U.S. investment ban that has battered their share prices.

The deletions of China Mobile, China Telecom, and China Unicom Hong Kong add to a raft of Chinese firms already dropped from indexes because of the ban and will force index tracking funds to sell their stock.