S&P Dow Jones and FTSE Russell will remove more listed Chinese companies from its indices in compliance with an updated U.S. executive order to ban investments in military-linked stocks.
S&P Dow Jones and FTSE Russell will remove multiple Chinese companies from their indices to comply with an executive order passed last month by U.S President Joe Biden.
The order, which takes effect from August 2, prohibits Americans from the purchase or sale of publicly traded securities of 59 blacklisted companies with close links to the Chinese military.
Existing American investors of the firms – direct or via funds – will be provided a one-year period to divest their holdings.
Global Rebalancing
The ban list includes companies engaged in a wide range of activities spanning across aerospace, shipbuilding, marine engineering and more.
S&P Dow Jones said it identified 25 companies that will be removed from its index on August 2.
Rival index provider FTSE Russell said it will remove an additional 20 firms on July 28.
