A ban launched by the Trump administration on US investment in certain Chinese firms has prompted S&P Dow Jones Indices to drop 21 Chinese entrants from its equities and bond indices.
S&P Dow Jones Indices announced on Thursday 10 December that 10 companies will be removed from its equity indices prior to the opening of the market on 21 December, and another 11 will be removed from its fixed-income indices before the open on 1 January.
These companies will include Hangzhou-based video surveillance company Hikvision, and state-owned chip foundry Semiconductor Manufacturing international Corporation (SMIC).
The move comes after the Trump administration issued an executive order in November banning US investors from acquiring stakes in 31 Chinese companies that the Defense Department categorises as backed by China’s military. The order is scheduled to come into effect on 11 January.
The executive order has also prompted FTSE Russell to remove eight Chinese companies including Hikvision from its FTSE Global Equity Index Series.