In a significant development, global index publisher FTSE Russell stated it will delete more Chinese companies from its global benchmarks following the Trump administration strengthening an executive order barring U.S. investment in Chinese firms which have military backing.

On Monday, the U.S. Treasury Department published further guidance clarifying that the executive order would apply to investors in exchange-traded funds, index funds as well as subsidiaries of Chinese companies designated as owned or controlled by the Chinese military.

So far FTSE Russell has announced the exclusion of nine Chinese companies from its global indexes. On Monday it said it is reviewing the U.S. clarification and will make evaluation for “potential additional exclusions”.

The list of Chinese companies that have been removed from its global indexes includes Hangzhou Hikvision Digital Technology Co, and China Railway Construction. It is slated to remove Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) in January 2021.

Other index publishers, including S&P Dow Jones Indices and MSCI have also made similar moves in compliance to U.S. President Donald Trump’s executive order.

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