Chinese telcos lose $5.6 billion in value as index providers drop them

Index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices said they would cut three Chinese telecom companies from benchmarks, part of a widening fallout from a U.S. investment ban that has battered their share prices.

The deletions of China Mobile, China Telecom and China Unicom Hong Kong add to a raft of Chinese firms already dropped from indexes because of the ban and will force index tracking funds to sell their stock. The firms have large numbers of passive investors and the announcements wiped a combined $5.6 billion.

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