SHANGHAI—S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-U.S. tensions. Outgoing U.S. President Donald Trump’s executive order, unveiled in November, is designed to deter U.S. investment firms, pension funds, and others from buying shares of Chinese companies designated by the U.S. Defense Department as backed by the Chinese military. S&P DJI said it would remove mainland-listed A-shares, Hong Kong-listed H-shares, and American Depositary Receipts (ADRs) of 10 companies including Hangzhou Hikvision Digital Technology Co Ltd and Semiconductor Manufacturing International Corp (SMIC) from all equity indexes prior to the market open on Dec. 21. The company said it will also remove securities issued by 18 Chinese companies from its fixed income indices before Jan. 1. “The order … may impact the ability of market participants …
S&P DJI Removes Chinese Firms From Indexes After US Order
