S&P Dow Jones, FTSE Russell To Remove Several Chinese Companies From Their Indices To Comply With U.S Investment Ban On Firms Linked To Chinese Military
by Swarajya Staff - Jul 9, 2021 10:33 AM
FTSE Nasdaq
Snapshot
S&P Dow Jones and FTSE Russell will remove several Chinese companies from their indices to comply with an executive order passed last month by U.S President Joe Biden that prohibits investment in businesses believed to have ties to the Chinese military.
The removals will force global fund managers to rebalance their investment allocations that mirror the indices, dropping the businesses that are no longer part of those benchmarks. In the first six months this year as many as 36 Chinese companies received a total of US$12.6 billion in their initial public offerings.
China on Friday expressed opposition to United States President Joe Biden's expansion of restrictions on investments in certain Chinese companies and vowed to take necessary measures to safeguard the legitimate rights of Chinese enterprises.
US President Joe Biden is expanding the list of US ban on Chinese firms previously issued by former President Donald Trump, extending it to a total of 59 firms.
Joe Biden Announces Ban On U S Investments In 59 Chinese Companies With Either Links To PRC Military Or Selling Surveillance Tech swarajyamag.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from swarajyamag.com Daily Mail and Mail on Sunday newspapers.
4 Jun in 13:00
U.S. President Joe Biden on Thursday expanded restrictions on American investments in certain Chinese companies with alleged ties to the country’s military and surveillance efforts, adding more firms to a growing blacklist.
In an executive order, Biden barred U.S. investors from financial interests in 59 Chinese companies over fears of their links to the Chinese government’s geopolitical ambitions, continuing some portions of the tough tact former President Donald Trump took in discussions with Beijing. This E.O. allows the United States to prohibit – in a targeted and scoped manner – U.S. investments in Chinese companies that undermine the security or democratic values of the United States and our allies, the White House said in a press release.