Index provider MSCI / FTSE Russell remove China’s telecom companies – today -20-1


Global providers and want to remove three Chinese from their indices in response to the US sanctions. Affected are Mobile, and China Unicom Hong Kong, whose shares fell significantly on Friday. China Mobile hit a 14-year low and China stocks fell to their lowest level in twelve years. In the meantime, the three companies lost ten billion dollars in market value. In addition, the stock exchange operator Nyse will exclude the three companies from stock trading from Monday.

With this step, the index providers and the Nyse are reacting to a ban by the US government. Accordingly, from November onwards, Americans will be prohibited from investing in Chinese companies that are said to have ties to the Chinese military. As a result, other companies from the People’s Republic have already been deleted from indices, which often means that index tracking funds also sell their shares. Speculation that the ban could be extended to technology giants Alibaba and Tencent is also causing unrest in the market.

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