Country Garden Holdings, China's largest property developer, will be 'kicked out' from Hong Kong's Hang Seng index on September 4.
The decision was made following the benchmark's latest annual quarterly review, at which point it will be replaced by pharmaceutical firm Sinopharm.
In addition, the estate management firm and joint venture experts Country Garden will also be excluded from the Hang Seng Index China Enterprises which will be replaced by online travel agency Trip.com.
The Hang Seng China Enterprises Index serves as a benchmark that reflects the overall performance of major land security listings in Hong Kong.
The report is a new 'slap' to China's struggling property sector, coupled with news that the giant Evergrande property failed to protect banks in the United States last week.
So far this year, Country Garden shares have fallen more than 70% to hit a low after the company reportedly defaulted on coupon payments.
Country Garden now has less than 30 days to make the coupon payment released August 7 on a two-dollar coupon bill worth $22.5 million.
Meanwhile, the Central Bank of China (PBOC) unexpectedly kept its five-year prime lending rate (LPR) at 4.20%, and reduced the one-year LPR by 10 base points to 4.45%.
Following the PBOC's actions which were seen as not quite dovish, financial markets moved mixed in the Asian session.
