FTSE to delist three Chinese companies as NYSE revokes the removal
Published: Jan 05, 2021 12:18 PM

Pedestrians walk past the New York Stock Exchange (NYSE) in New York, the United States, Sept. 3, 2020. U.S. stocks plunged on Thursday, as a steep sell-off in tech shares dragged down the market. The Dow Jones Industrial Average fell 807.77 points, or 2.78 percent, to finish at 28,292.73. The 30-stock index shed more than 1,000 points, or about 3.5 percent, at the lows. The S&P 500 fell 125.78 points, or 3.51 percent, to end at 3,455.06. The Nasdaq Composite Index sank 598.34 points, or 4.96 percent, to 11,458.10. (Xinhua/Wang Ying)

FTSE Russell said it will delist three Chinese firms from its global equity indexes on Monday as another global index provider, the New York Stock Exchange (NYSE) has announced to revoke its previous China delisting decision made last week.

FTSE Russell issued an announcement on Monday local time, saying that it will remove China United Network Communications, Semiconductor Manufacturing International Corporation (SMIC) and Nanjing Panda Electronics from FTSE Russell's FTSE Global Equity Index Series as well as the FTSE Global China A Inclusion Indexes from Thursday. 

The announcement also said it will remove SMIC from its FTSE China 50 Index and video security firm Hangzhou Hikvision Digital Technology from its FTSE China A50 Index. Hikvision Digital was removed from the FTSE Global Equity Index Series last month.

The latest removal came at the same time when NYSE said on Monday it no longer intended to move forward with the delisting of three Chinese companies.

On December 31 local time NYSE announced it has started the process of delisting China Mobile, China Unicom and China Telecom (Hong Kong) in a move orchestrated by the Trump administration to crack down on Chinese businesses.

The exchange said it made the decision "in light of further consultation with relevant regulatory authorities," in a statement on its website, Reuters reported.

The China delisting of global index providers followed an executive order from the White House in November which bars US investors from any investment into Chinese companies that it deems to have ties to the Chinese military.

China firmly opposes the US government's politicization of trade issues and unjustified suppression of Chinese companies by abusing state power under the weakest pretext of national security, said Hua Chunying, Chinese Foreign Ministry spokesperson in response to the NYSE delist on Monday.

"This is in serious violation of market competition principles and international trade rules the US side always prides itself on. The Chinese government will take necessary measures to resolutely safeguard Chinese companies' rights and interests," Hua said.