FTSE Russell to remove more China stocks from indexes

Shanghai

GLOBAL index publisher FTSE Russell said it will delete a further 20 Chinese companies from its indexes after user feedback on an updated US executive order that bars US investment in companies with alleged ties to China's military.

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

In a statement on its website, FTSE Russell said the additional Chinese companies will be deleted from its indexes on July 28.

"Excluding quality Chinese companies from the indices will only hurt the image of and cause losses to the indices themselves," foreign ministry spokesperson Wang Wenbin said. The United States is unjustifiably oppressing Chinese companies, he told a regular briefing in Beijing on Friday.

The index publisher said the decision was based on feedback from index users and stakeholders.

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 and Hangzhou Hikvision Digital Technology from its indexes due to US sanctions. REUTERS