Since former U.S. President Donald Trump signed an executive order last year banning U.S. investments in Chinese companies owned and controlled by the Communist Party of China (CPC) military, a number of international index companies have announced the removal of some Chinese stocks. Japanese media reported that Nikkei announced that it would remove seven Chinese companies from its 2017 cross-market index, the Nikkei Asia300 Investable Index, effective Feb. 2.
According to the report, the seven Chinese companies include China Telecom (00728), China Unicom (00762), China National Offshore Oil (00883), China Mobile (00941), China Railway Construction (01186), China CNR (01716) and China Communications Construction (01800).
According to the rules for calculating the Asia 300 investable index, the index will reportedly not add new stocks even if the number of constituents drops below 300. However, the market is expected to conduct the annual periodic review in June this year, the number of constituents of the Asia 300 investable index will be restored to 300.
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