70% military affiliations of Chinese companies included in global indices: USA

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At least 70 percent of Chinese companies, the US State Department said today.

Washington:

At least 70 percent of Chinese military-affiliated companies have subsidiaries whose securities are included in major stock indices, the U.S. State Department said today, adding that these companies are involved in civilian and military production with funds from U.S. investors are .

As of June 22, of 31 companies with Chinese military ties, at least 68 had different affiliates whose shares were included in key benchmarks, the South China Morning Post reported, citing the State Department.

“The Chinese Communist Party’s threat to America’s national security extends to our financial markets and affects American investors,” the State Department said in a factual report earlier this month.

“Many major stock and bond indices developed by index providers such as MSCI and FTSE include malicious People’s Republic of China (PRC) companies on the Ministry of Commerce’s Entity List and / or the Ministry of Defense’s list of Chinese Communist Military Companies.” added.

The State Department said China National Chemical Corporation and China Communications Construction Company are among 22 companies whose subsidiaries are included in the MSCI Emerging Markets Index, the FTSE Emerging Index and the Bloomberg Barclays Global Aggregate Index.

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On November 12, US President Donald Trump signed an executive order prohibiting Americans from investing in these 31 companies starting January 11 next year.

Earlier this month Washington blacklisted four more companies, including China’s top chipmaker Semiconductor Manufacturing International Corporation and oil giant China National Offshore Oil Corporation.

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