FTSE Russell To Drop 8 Chinese Companies In Response To US Blacklist

The FTSE Russell will remove eight Chinese companies from some of its indexes, Financial Times has reported.

What Happened

The U.K.-based index provider plans to remove the companies on Dec. 21 from its FTSE global equity indices and the FTSE China A Inclusion index.

This is in response to a U.S. order that bans Americans from buying shares of companies on a blacklist of companies the White House says are connected to the Chinese military.

The eight companies include China Railway Construction ADR CWYCY, China Spacesat and Hangzhou Hikvision, a maker of surveillance equipment.

Increased Pressure

This comes as U.S. politicians on both sides of the political divide are pushing for tougher actions against Chinese listed firms.

On Wednesday, the U.S. House of Representatives passed a bill that would kick foreign companies off U.S. exchanges if they do not adhere to the same disclosure rules American companies must follow. The bill has wide bipartisan support and was passed earlier by the U.S. Senate. It heads next to the desk of U.S. President Donald Trump for signing.

Companies such as Alibaba Group Holding Ltd -  BABA  would be affected.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Katy Lin 1 month ago Member's comment

Anyone know which 8 companies were targeted?

Alpha Stockman 1 month ago Member's comment

I don't believe this Blacklist is going to include #Alibaba. If so, this is actually bullish for $baba. More money left for them!