FACTBOX-Benchmark index providers remove Chinese firms after U.S. investment ban

  • 1/22/2021
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Jan 22 (Reuters) - Global index providers and the New York Stock Exchange have dropped Chinese companies named on a U.S. Defense Department list from their products, following a government order forbidding U.S. investors from owning them. Here is an overview of the actions of the NYSE and index companies MSCI Inc, FTSE Russell and S&P Dow Jones Indices so far: WHAT HAPPENED? * An executive order from the White House here under Donald Trump banned Americans from investing in Chinese companies the Defense Department here have ties to the military, an assertion many of the companies deny and which China"s government has said lacks evidence. Investors must divest their holdings in those companies by Nov. 11. * There are 44 firms on the Defense Department list. RESPONSE SO FAR * Twenty-four of the affected companies had affiliates listed on major exchanges in December, according to the U.S. State Department here. Since then nine more firms have been added to the list including the likes of Xiaomi * The New York Stock Exchange has delisted U.S.-traded American Depositary Receipts (ADR) of three Chinese telecom firms. * A total of 16 different companies will be removed from equity indexes. MSCI removed 13, S&P DJI 14 and FTSE Russell 15. * S&P DJI removed 20 companies from bond indexes. * Affected indexes include global benchmarks as well as China indexes such as the FTSE China A50 and China 50 . * Most deletions have now taken effect, although FTSE Russell here will remove state oil giant CNOOC from its global indexes and the FTSE China 50 Index on Jan. 27. The NYSE has yet to say whether it will delist the CNOOC ADR. * MSCI and FTSE Russell removed only A-share, or mainland, and H-share, or Hong Kong listings. S&P DJI also deleted some U.S.-traded American Depositary Receipts. FTSE Russell indexes do not include ADRs. * Some of the index providers are creating alternative indexes for investors to whom the executive order does not apply and who wish to retain exposure to the sanctioned companies. * Index makers have refrained from removing some subsidiaries. Here is a table listing the affected companies, their stock tickers and the actions of the index providers: Company MSCI FTSE Russell S&P Dow Jones Indices Semiconductor Removed Removed Hong Removed Manufacturing mainland and Kong listing mainland and International Hong Kong Hong Kong Corp listings listings and , ADR Hangzhou Removed Removed Removed Hikvision mainland mainland mainland Digital listing listing listing Technology Co Ltd China Removed Removed Removed Communications mainland and mainland and mainland and Construction Hong Kong Hong Kong Hong Kong Company listings listings listings and , ADR China Spacesat Removed Removed Removed mainland mainland mainland listing listing listing China Railway Removed Removed Removed Construction mainland and mainland and mainland and Corporation Hong Kong Hong Kong Hong Kong , listings listings listings and ADR CRRC Corp Removed Removed Removed , mainland and mainland and mainland and Hong Kong Hong Kong Hong Kong listings listings listings Dawning Removed Removed Removed Information mainland mainland mainland Industry Co listings listings listing China Nuclear Removed Removed Engineering & mainland mainland Construction listing listing Corporation China National Removed Removed Chemical mainland mainland Engineering Co. listing listing Ltd. Nanjing Panda Removed Removed Electronics Co mainland mainland Ltd listing listing China United Removed Removed Network mainland mainland Communications listing listing Ltd China State Removed Hong Construction Kong listing International and ADR Holdings Ltd China Mobile Ltd Removed Hong Removed Hong Removed Hong Kong listing Kong listing Kong listing and ADR China Telecom Removed Hong Removed Hong Removed Hong Corp Ltd Kong listing Kong listing Kong listing and ADR China Unicom Removed Hong Removed Hong Removed Hong Hong Kong Ltd Kong listing Kong listing Kong listing and ADR China National Removed Hong Removed Hong Removed Offshore Oil Kong listing Kong listing mainland and Corp. (CNOOC) Hong Kong <0883.HK > listings and ADR S&P Dow Jones Indices will also delete bonds issued by the following companies from its fixed income indexes: Company Issuer RIC China Communications Construction Co Ltd China Nuclear Engineering & Construction Corp CRRC Corp Ltd Semiconductor Manufacturing International Corp (SMIC) China Railway Construction Corp Ltd China National Chemical Engineering Group Corp Ltd Aviation Industry Corporation of China Ltd China Aerospace Science and Industry Corp Ltd China Aerospace Science and Technology Corp China Electronics Corp China Electronics Technology Group Corp China General Nuclear Power Corp China National Chemical Corp Ltd China National Nuclear Corp China Shipbuilding Industry Corp Ltd China South Industries Group Co Ltd China State Shipbuilding Corp Ltd China Three Gorges Group China Telecom Corp Ltd China United Network Communications Co Ltd (Compiled by Marc Jones in London, Tom Westbrook in Singapore and Samuel Shen in Shanghai; editing by Emelia Sithole-Matarise)

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