- S&P Dow Jones Indices will drop securities from 21 Chinese companies in line with an executive order issued by President Donald Trump that limits US investment in some Chinese firms.
- Hikvision, SMIC, CRRC, and seven other companies will be deemed ineligible from S&P’s equity indices before December 21.
- S&P DJI will also remove 11 additional securities issued by Chinese companies from its fixed-income indices by January 1.
- London’s FTSE Russell will also drop eight companies with ties to Chinese military from some of its indices later this month.
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S&P Global Dow Jones Indices on Wednesday banned 21 Chinese firms from its benchmark indices following a Trump administrative order that prohibits US investors from purchasing certain Chinese securities.
Securities from 10 companies, including Hikvision, SMIC, and CRRC, will be deemed ineligible to trade on S&P’s equity indices before the market open on December 21, a statement said.
S&P will also remove 11 additional securities issued by Chinese companies from its fixed income indices prior to market open on December 1.
London’s FTSE Russell will also drop eight companies with ties to Chinese military, as named by the US government, from some of its indices, on December 21.
President Trump signed an executive order in November that prevents US citizens and companies from buying shares in companies that it believes have ties to the Chinese defence sector. The order sent shares of top Chinese stocks lower by as much as 4% to 8%.
The ban by index providers is another part of the rising tensions between the US and China, which have escalated since the signing of a trade deal almost a year ago and the outbreak of the COVID-19 pandemic at the start of 2020.
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