On January 4th local time, FTSE Russell, a wholly owned subsidiary of the London Stock Exchange Group, announced that starting from the opening of January 7th, the stocks of China United Network Communications Group Co., Ltd. (China Unicom), Nanjing Panda Electronics Co., Ltd. and Semiconductor Manufacturing International Corporation (SMIC) will be removed from the FTSE Global Equity Index Series and the FTSE China A-Share Index.
FTSE Russell said the company has referred to the Trump administration's executive order banning investment in Chinese companies with alleged "military backgrounds" and removed some Chinese companies from global indexes after review.
Since Trump signed an executive order in November last year banning Americans from investing in companies with Chinese military backgrounds, companies such as FTSE Russell, MSCI and S&P Dow Jones Indices have removed blacklisted Chinese companies from their indexes to comply with the regulations.
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