FTSE Russell to Remove More China Stocks From Indexes Over US Ban

By Reuters
Reuters
Reuters
July 9, 2021 Updated: July 9, 2021

SHANGHAI—Global index publisher FTSE Russell said it will delete 20 more Chinese companies from its indexes after user feedback on an updated U.S. executive order that bars U.S. investment in companies with alleged ties to China’s military.

U.S. President Joe Biden signed the order on June 3 that bans U.S. entities from investing in dozens of Chinese companies with alleged ties to defense or surveillance technology sectors, replacing an earlier order under former president Donald Trump.

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

“Excluding quality Chinese companies from the indices will only hurt the image of and cause losses to the indices themselves,” said Wang Wenbin, China’s foreign ministry spokesman.

The United States is unjustifiably oppressing Chinese companies, he told a regular briefing in Beijing on Friday.

The decision was based on the 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), and 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 U.S. sanctions.

Reuters
Reuters