Major Taiwanese newspaper China Times recently reported that two major U.S. stock indexes, the S&P and the Dow Jones Indices and FTSE Russell, decided to remove dozens of Chinese companies from their indexes. This will take effect at the end of July and in early August, respectively. This is the latest move by the U.S. stock market in response to the Biden administration’s executive order against China, which prohibits domestic investments in companies suspected of being affiliated with the Chinese military. In the past decade, the US capital market has always been a source of funds for Chinese companies, especially in the technology sector. At the same time, in the past couple of weeks, China has cracked down on several Chinese companies that wanted to list in the U.S. stock markets. Also, some of the stocks removed earlier based on Trump’s order now can return under Biden’s new Presidential Decree.
Source: China Times, July 9, 2021