The index provider FTSE Russell said it would remove eight companies named by the US government as having ties to the Chinese military from some of its indices, after Donald Trump banned US investors from holding stakes in the businesses, reported the Financial Times.
FTSE Russell said the companies — which include China Railway Construction Corporation, China Communications Construction Company and Hikvision, a maker of surveillance cameras — would be removed from its FTSE global equity indices and the FTSE China A Inclusion index on December 21.
The benchmark operator said it would remove other companies from its indices if the Office of Foreign Assets Control, the Treasury department body that oversees and enforces US sanctions, published an official list of banned companies, reported the FT.
The removals followed a consultation with index subscribers, FTSE Russell said. It has not yet decided the effect the new US sanctions will have on its fixed income indices. The eight groups to be removed from FTSE indices ranged in market value from $3 billion to $66 billion.