21 Chinese businesses are about to suffer


21 Chinese enterprises are about to be “expelled” from the US stock market

Video equipment maker Hikvision, semiconductor company SMIC and 19 other Chinese enterprises will be excluded from the stock and bond index basket of S&P Dow Jones Indices (USA).

After the announcement of S&P Dow Jones Indices, SMIC shares traded in Shanghai still rose 1.01%. Photo: Shutterstock

S&P Dow Jones Indices Securities and Bond Joint Venture today announced on December 10, a move in the heels job The administration of US President Donald Trump prohibits US investors from buying certain shares of Chinese enterprises.

S&P Dow Jones Indices said that shares of 10 Chinese enterprises will no longer be valid in the index basket of this joint venture before the market opens on December 21.

In addition, S&P Dow Jones Indices will also delete shares of 11 other Chinese enterprises from its index basket before January 1, 2021.

Hikvision and SMIC have not yet commented on the move of S&P Dow Jones Indices.

Last month, the United States issued an administrative order banning American investors from investing in Chinese businesses, a move to increase pressure on Beijing following the US presidential election. This Ordinance officially took effect on January 11, 2021.

Washington’s move to prevent American businesses, pension funds and investors from buying shares in 31 Chinese companies accused by the Pentagon is backed by the Chinese military.

Hikvision earlier commented that the US administration’s decree was “unfounded”.

After the announcement of S&P Dow Jones Indices, Hikvision shares traded in Shenzhen still rose more than 4% at the beginning of the trading session on December 10, while SMIC shares traded in Shanghai rose 1.01%.

Last week, stock index provider FTSE Russell (London) said it would also remove shares of Hikvision and seven other Chinese companies from the FTSE global equity basket and other indices. another number of this unit. FTSE Russell’s move was based on feedback from trading registrants and shareholders.

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