FTSE Russell to remove eight Chinese companies from its global stock benchmarks beginning December 21 after US blacklisting
- Hikvision, China Railway Construction and six others to be removed from global stock benchmarks beginning December 21
- Trump administration has blacklisted 35 Chinese companies over ties to Chinese military
The index provider, an arm of the London Stock Exchange Group, said it would remove the companies, including China Railway Construction Corporation, surveillance camera maker Hangzhou Hikvision and supercomputer manufacturer Dawning Information or Sugon, from its FTSE Global Equity Index Series (GEIS), its FTSE China A Inclusion indices and associated indices beginning on December 21, following its quarterly index review.
The earliest any of the companies could be assessed for inclusion in the FTSE Global Equity Index Series, for example, would be when the index provider conducts its semi-annual review in September 2022 if sanctions were removed by the end of March next year, the index provider said.
The blacklisting promises to turn the new year into a potentially volatile start for money managers as both stock and bond index compilers adjust their benchmarks. JPMorgan Chase has taken initial steps to deal with more than US$41 billion worth of dollar- and euro-denominated debt issued by sanctioned Chinese companies and their units in the bank’s emerging-market bond indices, it said in a November 17 report.
