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Goldman Sachs, JPMorgan To Delist 500 Hong Kong Products After US Ban

By Staff

US banks Goldman Sachs JPMorgan and Morgan Stanley will be delisting 500 Hong Kong-listed structured products, following a US ban on investments in companies Washington deems linked to China's military.


The products are linked to telecom companies China Mobile, China Telecom and China Unicom and local indexes including the benchmark Hang Seng Index, the three investment banks said in filings to the Stock Exchange of Hong Kong on Sunday evening.

Goldman Sachs, JPMorgan To Delist 500 Hong Kong Products After US Ban

The filings said that the delisting is in line with last week's statement from the US Office of Foreign Assets Control (OFAC) clarifying a November order from President Donald Trump that banned Americans from investing in Chinese companies that the US considers having links with China's military.

OFAC guidance cited in some of the filings said the three telecom companies were specifically included in the initial executive order.

Hong Kong Exchanges and Clearing said in a statement it was "working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers."

There are over 12,000 structured products listed in Hong Kong issued by 15 companies.


Last week, index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices announced the cut of three Chinese telecom companies from benchmarks wiping a combined $5.6 billion off the value of their Hong Kong-traded shares on Friday.

Story first published: Monday, January 11, 2021, 9:42 [IST]
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