GLOBAL MARKET - BOSTON. Index provider FTSE Russell said on Friday it will delete shares of Hikvision and seven other Chinese companies from certain products after a U.S. order restricting the purchase of shares in those firms.
In a statement sent by a spokesman for owner London Stock Exchange Group, FTSE Russell said it will remove shares in companies including Hangzhou Hikvision, China Railway Construction Corp, and China Spacesat.
FTSE Russell said it acted following feedback from index subscribers and other stakeholders, and that it was following its policy when sanctions are imposed that restrict investments.
The move shows how a recent bid by the White House to give teeth to a blacklist of Chinese companies allegedly backed by the Chinese military could crimp U.S. investments in the country, often held in broad passive products.
Read Also: Oil moves up towards $50/bbl after OPEC+ supply compromise
A spokesman for FTSE Russell did not immediately provide more detail about the statement, issued after U.S. markets were closed on Friday.
Rival index provider MSCI Inc had previously said its products would "reflect any necessary changes" depending on U.S. law. A spokeswoman did not immediately respond to questions on Friday.
FTSE Russell had previously said it was reviewing securities, and said it could drop more companies based on findings by U.S. officials.
All eight companies to be dropped by FTSE Russell are on a list of "Communist Chinese Military Companies" compiled by the Pentagon.
The White House last month published an executive order, first reported by Reuters, barring U.S. investors from buying securities of the blacklisted firms starting in November 2021.
Earlier this week the Pentagon added four additional companies to its list of barred firms including China's top chipmaker SMIC and oil giant CNOOC.
Selanjutnya: Biden plans scaled-back inauguration to avoid spreading coronavirus in crowds
Cek Berita dan Artikel yang lain di Google News
