Salem Radio Network News Thursday, August 5, 2021

Business

U.S. index publishers to remove more China stocks after Biden order

SHANGHAI (Reuters) -The S&P Dow Jones Indices and FTSE Russell on late Wednesday decided to remove more Chinese companies from their indexes following an updated executive order from the Biden administration barring U.S. investment in firms with alleged ties to China’s military.

The S&P Dow Jones Indices identified 25 Chinese companies that would be deleted from its index, while FTSE Russell said it will remove an additional 20 firms on July 28.

The decision is based on the feedback from index users and stakeholders, FTSE Russell said.

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

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), 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.

(Reporting by Samuel Shen in Shanghai, Tom Westbrook in Singapore and Sanjana Shivdas in Bengaluru; Editing by Richard Pullin and Arun Koyyur)

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