News18» News»Business»FTSE Russell To Drop Eight Chinese Companies After U.S. Blacklisting
1-MIN READ

FTSE Russell To Drop Eight Chinese Companies After U.S. Blacklisting

FTSE Russell To Drop Eight Chinese Companies After U.S. Blacklisting

Index provider FTSE Russell said on Friday it will delete shares of Hikvision and seven other Chinese companies from certain products after a U.S. order restricting the purchase of shares in those firms.

BOSTON/WASHINGTON: Index provider FTSE Russell said on Friday it will delete shares of Hikvision and seven other Chinese companies from certain products after a U.S. order restricting the purchase of shares in those firms.

In a statement sent by a spokesman for owner London Stock Exchange Group, FTSE Russell said it will remove shares in companies including Hangzhou Hikvision, China Railway Construction Corp, and China Spacesat.

FTSE Russell said it acted following feedback from index subscribers and other stakeholders, and that it was following its policy when sanctions are imposed that restrict investments.

The move shows how a recent bid by the White House to give teeth to a blacklist of Chinese companies allegedly backed by the Chinese military could crimp U.S. investments in the country, often held in passive products built on broad indexes.

In its statement issued after U.S. markets closed on Friday, FTSE Russell said the deletions would occur from its FTSE Global Equity Index Series and several others effective Dec. 21.

A spokesman said its treatment of the companies remains under review in other indexes including in its FTSE China and China A products, considered China domestic indexes.

Rival index provider MSCI Inc had previously said its products would “reflect any necessary changes” depending on U.S. law. A spokeswoman did not immediately respond to questions on Friday.

FTSE Russell had previously said it was reviewing securities, and said it could drop more companies based on findings by U.S. officials.

All eight companies to be dropped by FTSE Russell are on a list of “Communist Chinese Military Companies” compiled by the Pentagon.

The White House last month published an executive order, first reported by Reuters, barring U.S. investors from buying securities of the blacklisted firms starting in November 2021.

Earlier this week the Pentagon added four additional companies to its list of barred firms including China’s top chipmaker SMIC and oil giant CNOOC. The FTSE Russell spokesman, Tim Benedict, said it was aware of those additions and said “we will evaluate those in due course.”

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Next Story
Loading...