FTSE RUSSELL MAY DELETE MORE CHINESE FIRMS FROM INDICES

Global index publisher FTSE Russell said it may delete more Chinese companies from its global benchmarks after the Trump administration on Monday strengthened an executive order barring US investment in firms with alleged Chinese military backing, Reuters reported.

The executive order, signed by President Donald Trump on November 12, triggered a rush by FTSE Russell, MSCI and S&P Dow Jones Indices to remove US-blacklisted Chinese companies from their indexes to keep their clients compliant, but the scope of the sanctions was seen as vague.

The US Treasury Department on Monday published guidance clarifying that the executive order, released in November, would apply to investors in exchange-traded funds and index funds as well as subsidiaries of Chinese companies designated as owned or controlled by the Chinese military.

FTSE Russell, which has announced the exclusion of nine Chinese companies from its global indexes in response to the executive order, said in a statement late on Monday that it is reviewing the US clarification and will make evaluation for “potential additional exclusions.”

FTSE Russell reiterated it will publish an announcement on Jan. 4, 2021, with any additional deletions being effective from Jan. 7. MSCI has announced the deletion of 10 securities issued by seven Chinese firms while S&P DJI said it would remove securities of 10 Chinese companies following Trump’s executive order.

WEEKLY FEATURE

JOSE MARI CHAN AND THE CHRISTMAS ANTHEM