Four Chinese companies will be excluded from the Nasdaq technology index of the New York Stock Exchange. It is a reaction to the ban of the American administration to buy shares of these companies. They will be removed from the index by December 21.
The Nasdaq index will leave shares of China Communications Construction, China Railway Construction, CRRC Corporation and Semiconductor Manufacturing International, the Nasdaq manager said in a statement.
Donald Trump’s executive order issued in November forbids US investors to buy these shares. The Trump administration justified the move by claiming that the companies were linked to the Chinese military. The Chinese Foreign Ministry objected to this decision, arguing that it violated the principles of competition. “The United States should stop using the reference to national security as a tool to suppress foreign companies,” the Chinese ministry said.
But the Nasdaq index manager is not the only one to say goodbye or farewell to the shares of Chinese companies. FTSE Russell, which manages the London Stock Exchange indices, has also previously announced the exclusion of several Chinese companies, and a similar move is being announced by S&P or Dow Jones index managers.