Nasdaq said on Friday it will remove shares of four Chinese construction and manufacturing companies from indexes it maintains in response to a US order restricting purchase of their shares.[BENGALURU] Nasdaq said on Friday it will remove shares of four Chinese construction and manufacturing companies from indexes it maintains in response to a US order restricting purchase of their shares.
The securities, which are not traded on the Nasdaq exchange, will be removed from the indexes on Dec 21. They include China Communications Construction, China Railway Construction Corp, CRRC Corp and Semiconductor Manufacturing International Corp, Nasdaq said in a statement. A White House executive order last month barred US investors from buying securities of blacklisted firms, starting in November 2021. The administration of President Donald Trump alleged the companies were linked to China's military.
China condemned the move, saying the effort ran counter to principles of market competition."The US should stop abusing national power and national security concepts to suppress foreign companies," Foreign Ministry spokeswoman Hua Chunying said on Dec 4. A spokeswoman for index provider MSCI Inc said via e-mail on Friday the firm has spoken with clients about possible changes and will communicate"any necessary changes" soon.