Ftse Russell has removed several more Chinese companies from its indices

The UK’s FTSE Russell, one of the world’s leading equity indices, decided to remove several more Chinese companies from its indices after some were kicked out of the US stock market.

Starting this Thursday, China United Network Communications Group, SMIC and Nanjing Panda Electronics will be removed from the FTSE Russell FTSE Global Equity Index series as well as the FTSE Global A-share Index of China.

FTSE Russell, wholly owned by the London Stock Exchange Group, also said on Monday (4 January 2021) that it would remove China’s largest chipmaker SMIC and Hangzhou Hikvision Digital Technology from the FTSE China 50 Index. Hikvision was removed from the FTSE World Equity Index series last month.

President Trump issued an executive order in November that prohibits any American or institution from investing in Chinese companies owned or controlled by the Chinese military. In December, dozens of Chinese companies were placed on a U.S. blacklist.

Other global index providers, including the New York Stock Exchange, MSCI, S&P Dow Jones and Nasdaq, have also dropped Some Chinese companies from their benchmarks.

The Chinese government said the delisting of three Chinese telecommunications companies by the New York Stock Exchange was politically motivated and ‘unwise.’ Beijing also said it would “take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies”.

Announced on January 1, the New York stock exchange on the basis of the President of the United States executive order force the three giants of China’s state-owned communications industry from the nyse after delisting, on Monday, the first trading day after the New Year, China telecom, China unicom and China mobile’s three major telecommunications companies in the Hong Kong stock market share price volatility, the biggest drop was close to 6%. By the end of the day, however, the three companies had largely recouped their losses, with China Mobile shares down just 0.8 per cent. China Telecom closed down 2.8%, while China Unicom’s shares edged up 0.5%. It was the first trading day since the New York Stock Exchange announced it was delisting the three companies.