[ad_1]
FTSE Russell, a branch of the London Stock Exchange, announced plans to eliminate the shares of eight Chinese companies from certain products shortly after Washington added them to a blacklist of companies with alleged Chinese military ties.
The international index provider will remove the eight companies’ shares from its FTSE Global Equity Index Series (GEIS), its FTSE China A inclusion indices and associated indices starting December 21 following the quarterly index review.
Also on rt.com
In the US blacklist the Chinese chip maker SMIC and the oil producer CNOOC for alleged military ties
The list of affected companies includes China Communications Construction Company, China Spacesat, China Nuclear Engineering & Construction Corporation, Hangzhou Hikvision, CRRC, Dawning Information (Sugon), China National Chemical Engineering Group and China Railway Construction, according to a statement from the London Stock Group exchange.
A combined market cap of the blacklisted companies stands at $ 143.1 billion, according to data from Bloomberg, compiled as of close of trading on Friday.
“Sanctioned companies will be considered for reinstatement in the standard FTSE Russell indices only after a period of 12 months from the date of removal of the sanctions”, the group said.
The step comes just days after the US administration introduced a phased ban on 35 Chinese companies and ordered to limit the buying and selling of their shares for alleged links to the Chinese military sector.
Also on rt.com
Trump’s blacklist of Chinese companies with ‘military ties’ is a blatant attempt to keep Boeing the king of the skies
According to FTSE Russell, add-ons will be removed as soon as they are added to U.S. sanctions lists by the Office of Foreign Assets Control, an arm of the U.S. Treasury Department.
Previously, rival index providers MSCI and Nasdaq announced plans to consider abandoning the sanctioned companies, noting that their products would “Reflect any necessary changes” depending on US law.
For more stories on economics and finance, visit RT’s business section
Source link
