Now Reading
S&P DJI to remove 21 Chinese firms from equities, bond indices

S&P DJI to remove 21 Chinese firms from equities, bond indices

December 10, 2020

(Reuters) – S&P Dow Jones Indices said on Thursday it would remove a total of 21 Chinese companies from its equities and bond indices, including Hikvision and SMIC, following a Trump administration order prohibiting purchase of certain Chinese securities by U.S. investors.

Securities from 10 Chinese companies will be deemed ineligible from equity indices prior to the market open on Dec. 21, the index provider said.

S&P DJI will also remove 11 additional securities in its fixed income indices prior to the open on Jan. 1.

Hikvision and SMIC did not immediately respond to a request for comment.

The United States in November unveiled an executive order prohibiting U.S. investments in Chinese companies, ramping up pressure on Beijing after the U.S. election. The order is effective Jan.11.

The move was designed to deter U.S. investment firms, pension funds and others from buying shares of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military.

Last week, index provider FTSE Russell said it will delete shares of Hikvision and seven other Chinese companies from its FTSE Global Equity Index Series and other products and that it had acted on feedback from subscribers and other stakeholders.

(Reporting by Shubham Kalia in Bengaluru; Editing by Arun Koyyur)

The post S&P DJI to remove 21 Chinese firms from equities, bond indices first appeared on One America News Network.

What's Your Reaction?
Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

© 2020 Myrtle Beach Choice. All Rights Reserved.

Scroll To Top