Meanwhile, Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) will be dropped from the FTSE China 50 Index, which is also popular among foreign investors.

Removal will take effect on Jan. 7 for both stocks.

The changes to the two China indexes come a day after FTSE Russell adjusted its global indexes. On Monday, it dropped eight U.S.-blacklisted Chinese companies including Hikvision and China Railway Construction from its global benchmarks. It will remove SMIC in January.

Rival index publishers S&P Dow Jones Indices and MSCI made similar moves, following Donald Trump's November executive order barring U.S. investment in Chinese firms with alleged backing from China's military.

FTSE Russell made the decision to remove U.S.-blacklisted Chinese companies after consulting with fund managers, brokerages and regulators.

The FTSE China A50 is a popular benchmark for foreign investors to access the Chinese onshore stock market, while FTSE China 50 includes both mainland and overseas-listed Chinese companies.

FTSE Russell said it is making the changes in a way similar to how it reflects other market events, and will continue to provide global investors with access to the China market.

In Tuesday's statement, FTSE Russell said it would continue to monitor U.S. sanction measures closely and make further index adjustments if needed.

Binay Chandgothia, a Hong Kong-based portfolio manager at Principal Global Investors, said the U.S. blacklist represent a narrow list of companies, many of which are not listed, and "therefore so far the impact is not so relevant.

"But if tomorrow that list is extended to a lot of the large-cap names, that is when you will see a more pronounced impact. But we are not hearing the effort is going in that direction at this point in time."

(Reporting by Samuel Shen and Tom Westbrook; editing by David Goodman and Jason Neely)