This photo taken on June 20, 2017 shows the website of global equity indexes provider MSCI on a computer in New York, the United States. (WANG YING / XINHUA)

SINGAPORE - 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 US 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 latest deletions followed the New York Stock Exchange confirming it would delist US-traded American Depositary Receipts of the three telecoms on Jan 11

The firms have large numbers of passive investors and the announcements wiped a combined US$5.6 billion off the value of their Hong Kong-traded shares on Friday.

In separate statements dated Jan 7, MSCI said it would remove the companies from its China indexes on Jan 8 and FTSE Russell said they would be cut from its Global Equity Index series and China A indexes on Jan 11.

S&P Dow Jones Indices will remove the Hong Kong-traded stocks of the three firms, as well as fixed income securities of China Telecom and China United Network Communications Co Ltd on Jan 12.

China Telecom and China Unicom Hong Kong said in statements on Thursday they expected the NYSE delisting to hit their stock prices. China Mobile said it reserves its rights to protect its interests.

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The index deletions are in response to a November order from US President Donald Trump banning Americans from investing in Chinese companies that the US deems to be tied to the Chinese military, beginning from November 2021.

China has condemned the move as wanton oppression of its companies and several of the affected firms have denied military ties.

The latest deletions followed the New York Stock Exchange confirming it would delist US-traded American Depositary Receipts of the three telecoms on Jan 11.

READ MORE: NYSE move sends traders scrambling

Fund managers say the market impact may only be shortlived because non-US buyers will replace the passive outflows.

China Mobile shares closed down 4 percent at their lowest level since 2006 and China Telecom shares dropped 3 percent to a 12-year low, while China Unicom finished down 0.9 percent after paring steep losses. All three stocks have shed more than 20 percent since Trump’s November order.