Index providers FTSE Russell and S&P Dow Jones Indices are each removing about 20 additional Chinese stocks from their indexes as a result of a White House ban on U.S. investments in Chinese companies tied to defense, intelligence, security research and surveillance technology.
President Joe Biden issued the ban in early June following up on a previous ban issued by former President Donald Trump. The ban applies to what the administration calls "Chinese Military-Industrial Complex Companies."
FTSE Russell and other index providers had removed several Chinese stocks previously and are expanding the number of removals. FTSE made the latest changes after reviewing comments from index users to a request for feedback on Biden's executive order.
FTSE is removing 20 stocks from FTSE Global Equity Index Series (GEIS), which is a broad series that covers all market caps from micro to large-cap across 49 developed and emerging markets, and from the FTSE Global China A Inclusion indexes on July 28. Chinese A shares are Chinese stocks that trade domestically on the Shanghai and Shenzhen Stock Exchanges.
