4:45 PM MYT
BOSTON/WASHINGTON/SINGAPORE (Reuters): MSCI Inc will cut seven Chinese mainland firms from some of its global indexes, it said on Tuesday (Dec 15), the third major index publisher to do so following US restrictions on owning the companies.
As with similar steps by S&P Dow Jones Indices and FTSE Russell the move means index-tracking funds will need to divest.
Companies to be deleted include SMIC, China Communications Construction Co and Hangzhou Hikvision, though MSCI said it will launch new parallel indexes that retain the securities.
MSCI said it decided to cut the companies after consulting customers following a ban on US investors buying stocks that the US Defence Department regards as backed by the Chinese military.
MSCI removes Chinese companies from global indexes, but will keep them elsewhere naija247news.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from naija247news.com Daily Mail and Mail on Sunday newspapers.