S&P Dow Jones Indices To Remove Chinese Firms From Indices On US Order

On Thursday, S&P Dow Jones Indices said that it would remove Chinese companies including Hikvision from its products, becoming the latest index provider to do so after the Trump administration restricted purchases of their shares.

S&P DJI said it would remove A-shares, H-shares and ADRs of 10 companies including Hikvision and Semiconductor Manufacturing International Corp from all equity indices prior to the market open on 21 December. It will also remove 11 securities issued by Chinese companies from its fixed income indices before 1 January 2020.

"The order ... may impact the ability of market participants to replicate S&P DJI Equity and Fixed Income indexes containing securities affected by the order," S&P DJI said in a statement.

S&P DJI's move comes after index provider FTSE Russell said last week that it would remove eight Chinese firms from its products to comply with the US executive order, which barred American investors from buying securities of blacklisted firms starting in November 2021.

The company said it had acted on feedback from index subscribers and other stakeholders.

In November, the Trump administration designed an executive order to deter US investment firms, pension funds and others from buying shares of Chinese companies designated by the Defense Department as backed by the Chinese military.