MSCI will drop three Chinese state-owned telecoms companies from closely followed stock benchmarks as it rushes to comply with a Trump administration executive order barring investment in companies with alleged links to China’s military, reported the Financial Times.
Shares of China Mobile, China Telecom and China Unicom traded in Hong Kong will be removed from many of the company’s indices, including the MSCI China All Shares and All Country World benchmarks, at the close of trading on Friday. That is the last full trading day before the executive order signed in November by US president Donald Trump goes into effect on January 11.
The three companies, which represent 0.81% of the MSCI China All Shares index and less than a tenth of a per cent of the ACWI index, have become a flashpoint as the Trump administration has cracked down on Beijing in its final days in office, reported the FT.
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