According to Reuters on the 30th, FTSE Russell, a global index-based company, said that more Chinese companies may be excluded from its global index in the future. This move is due to the U.S. policy of suppressing Chinese enterprises.
According to the report, following the Trump administration’s executive order in November prohibiting Americans from investing in “Chinese enterprises with military backgrounds”, the U.S. Treasury Department said on Monday that it would further extend the application of the executive order to listed trading funds, index funds, and those believed to be owned or controlled by the Chinese military.
Subsidiaries of Chinese enterprises. FTSE Russell’s latest statement is in response to the above request of the U.S. Treasury Department. In a statement, FTSE Russell said that a study was being conducted on the requirements and that “potential more eliminations” would be assessed.
Earlier this month, FTSE Russell announced the removal of eight Chinese enterprises from its global index, including Hikvision, CRRC, China Chemical Industry, etc., earlier this month.
FTSE Russell will also exclude SMIC from its index in January next year.
In addition to FTSE Russell, S&P Dow Jones Index Company, Nasdaq Stock Exchange and Mingdi also removed Chinese enterprises from their relevant indexes this month after the Trump administration issued executive orders prohibiting investment in Chinese companies.
Wang Wenbin, spokesman of China’s Ministry of Foreign Affairs, said earlier that individual enterprises are not included in some international indices, and does not prevent international investors from investing in these enterprises in other ways and sharing the dividends of China’s development.
At the same time, he stressed that he firmly opposed the unprovoked suppression of Chinese enterprises by the U.S. government.
Industry experts said that the above behavior of international index companies may have some impact, but it is very limited, because the excluded companies have a very small proportion of the A-share inclusion factor of the above index.