According to Reuters, two major U.S. stock indexes have decided to remove more Chinese stocks to comply with government orders.
The S&P Dow Jones Indices on Wednesday decided to remove 25 Chinese companies from its indexes starting Aug. 2, while FTSE Russell decided to delete an additional 20 Chinese companies from its indexes starting July 28.
President Joe Biden signed an executive order on June 3 extending the ban on investments in companies related to the Chinese military.
FTSE Russell said the decision was made based on feedback from index users and holdouts. It will delete companies including Aerospace CH UAV, Avic Aviation High-Technology, and Avic Heavy Machinery.
FTSE Russell has previously removed Chinese companies such as Hangzhou Hikvision Digital Technology from the index.