LSE – FTSE Russell to Remove More Chinese Companies from Indexes

The three companies being removed are China United Network Communications, Semiconductor Manufacturing International Corporation and Nanjing Panda Electronics.

FTSE Russell has reportedly said it will delete a further three firms from its global equity indexes to comply with Executive Order 13959.

Executive Order 13959, issued in November, prohibits US persons from purchasing securities of companies identified to be supplying or otherwise supporting the Chinese military.

FTSE Russell has already announced the removal of Chinese companies named by the US Defense Department. The three new companies being removed from its global equity and China indexes are China United Network Communications, Semiconductor Manufacturing International Corporation (SMIC) and Nanjing Panda Electronics.

MSCI, S&P Dow Jones Indices and Nasdaq have similarly announced the removal of Chinese companies from their indexes.

The NYSE has meanwhile backtracked on a planning to delist the ADRs of China Telecom, China Mobile and China Unicom from its market to comply with Executive Order 13959, citing “further consultation with relevant regulatory authorities.”

The LSE (London Stock Exchange) said on Monday (4 January) that it will start proceedings to delist China Mobile and China Unicom from its equity segment on the basis that they would lose their NYSE primary listing. It is unclear whether this will still occur given NYSE changed position.