FTSE Russell suspends moves to eject more Chinese firms from indexes

Inspur Digital Enterprise Technology

28/01/2021 17:13

LONDON, Jan 28 (Reuters) - FTSE Russell has put on ice the
potential ejection of five more Chinese firms from key stock
indexes, after the United States pushed back any decision on
formally blacklisting them to May.
    President Joe Biden's administration has extended a deadline
requiring investors to sell their stakes in companies "whose
name closely matches, but does not exactly match, the name of a
Communist Chinese military company" until May 27.  urn:newsml:reuters.com:*:nL1N2K212L
    The U.S. Treasury Department's Office of Foreign Assets
Control (OFAC) said in its statement, issued on Wednesday, that
it had extended the Jan. 28 deadline.
    Five of the companies involved are CGN Power  1816.HK ,
China National Nuclear Power  601985.SS , China Shipbuilding
Industry  601989.SS , Inspur International  0596.HK  and
Sinochem International  600500.SS .
    "In the light of the OFAC announcement, FTSE Russell will
not be implementing any deletions from FTSE Russell indexes
based upon 'closely matched' names at this time," FTSE Russell
said, adding that it would monitor for further updates.
    Former U.S. President Donald Trump's administration moved in
November to prohibit U.S. investments in Chinese companies that
Washington said were owned or controlled by the Chinese military
in an effort to ramp up pressure on Beijing. 
    The blacklist now includes 44 companies including China's
top chipmaker SMIC and oil giant CNOOC. The New York Stock
Exchange, as well as FTSE Russell, MSCI and S&P Dow Jones, have
removed as many as 15 of them from their benchmarks.
 urn:newsml:reuters.com:*:nL4N2J12CL 

 (Reporting by Marc Jones; Editing by Edmund Blair)
 ((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters
Messaging: marc.jones.thomsonreuters.com@reuters.net  Twitter
@marcjonesrtrs))