Nasdaq Stock Exchange on Friday said, it will remove shares of four Chinese companies from indexes it maintains in response to a U.S. order.
A White House executive order last month barred U.S. investors from buying securities of blacklisted firms
Names of the Companies
The companies which will be going to removed are Chinese construction and manufacturing companies namely:
- China Communications Construction Company
- China Railway Construction Corporation
- CRRC Corporation
- Semiconductor Manufacturing International Corp
This four Chinese companies are the only ones among those on the White House list that appear in Nasdaq indexes.
Reason
The administration of President Donald Trump alleged the companies were linked to China’s military.
Removal Date
The securities, which are not traded on the Nasdaq exchange, will be removed from the indexes on Dec. 21.
Beginning of Removal
Index FTSE Russell said on Dec. 4 it would delete shares of eight Chinese companies in light of moves by the White House.
S&P Dow Jones Indices said on Dec. 10 it would remove mainland-listed A-shares, Hong Kong-listed H-shares and American Depositary Receipts (ADRs) of 10 companies including Hangzhou Hikvision Digital Technology Co Ltd
Response from China
China condemned the move, saying the effort ran counter to principles of market competition.
The U.S. should stop abusing national power and national security concepts to suppress foreign companies.
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