Indexes remove more Chinese companies from the listing

Global index providers FTSE Russell and MSCI will remove three other Chinese companies from the indices, in response to a White House order banning investments in listed companies known to support the Chinese military.

S&P Dow Jones Indices has said it will remove the three telecommunications companies from its equity and fixed income indices.

The actions announced Thursday by the index providers follow clarifications released Wednesday by the Treasury Department’s Office of Foreign Assets Control “that could impact the investability of MSCI indices by some investors,” MSCI said in a statement.

The three index providers began removing Chinese companies from global and Chinese indexes in early December in response to President Donald Trump’s decree. At the time, FTSE Russell also cited feedback received from index subscribers and other stakeholders and its guide to indexing policy when clients are unable to trade in a market, including when penalties are imposed. imposed.

The last three titles removed by MSCI at the close on Friday – China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd – represent 0.81% of IMI MSCI China All Shares.

In a separate statement, FTSE Russell said its latest deletions follow OFAC’s clarifications as well as guidance issued by the Treasury Department.

The deletions of the FTSE China Index, the FTSE Global Equity Index Series, the FTSE Global China A Inclusion Indices and related indices, will be effective when the markets open on January 11, FTSE Russell said.

The New York Stock Exchange cited the new guidance on Wednesday for its decision to pull the three major public telecommunications companies from the exchange, after initially deciding not to do so, and trading will be suspended in early January 11.

Senator Marco Rubio, R-Fla., Blamed the NYSE overthrow on “misdirection” from the Treasury Department which he called “a blatant attempt to serve the interests of Wall Street and the Communist Party of China to costs of the United States. . “

In a statement, Mr Rubio said, “I hope this embarrassing incident makes it clear that there is a strong bipartisan consensus that the United States will not allow China’s exploitation of US financial markets, or Wall Street’s role as a facilitator, continues unhindered. “