Following U.S. President Joe Biden updating an executive order banning non-compliant Chinese companies from US stock exchanges, global index publisher FTSE Russell said it will remove a further 20 Chinese companies from its indexes.
Many of these companies have alleged tied to the China’s military.
On June 3, U.S. President Joe Biden had signed the order banning U.S. entities from investing in dozens of Chinese companies with alleged ties to the Chinese defence or surveillance technology sectors, replacing an earlier executive order under Donald Trump.
FTSE Russell put up a statement on its website saying, additional Chinese companies will be deleted from its indexes on July 28. The decision was based on the feedback from index users and stakeholders.
Chinese stocks which will be deleted from FSE Russell include Chinese aerospace-related companies including Avic Aircraft, Aerospace CH UAV, Avic Aviation High-Technology, Avic Heavy Machinery, 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.
Previously FTSE Russell had removed Chinese companies including Semiconductor Manufacturing International Corp and Hangzhou Hikvision Digital Technology Co from its indexes following U.S. sanctions.