Hong Kong stock exchange filings recently showed that Morgan Stanley, JPMorgan and Goldman Sachs units will delist a total of five hundred Hong Kong listed structured products.
The products are linked to Telecom companies China Telecom, China Mobile and China Unicom and local index including the benchmark Hang Seng Index, the three investment banks said in filings.
The delistings are because of statements given out by The US office of Foreign Assets Control clarifying an order from the president Donald Trump.
Which banned Americans from investing in Chinese companies that the US deems to have links with China’s military.
The Bourse operator of Hong Kong Exchanges and Clearing said
“Working
closely with the relevant issuers to ensure orderly delisting, and facilitate
buyback arrangements being arranged by the issuers.”
The US
Office of Foreign Assets Control guidance cited in some of the filings said.
The three telecom companies were specifically included in the initial executive order.
Over Twelve thousand structured products listed in Hong Kong issued fifteen companies
The Securities and Futures Commission, Hong Kong’s market watchdog said that it had stressed to the investment banks that any action taken by the bank should be fair, necessary
Having regard to the best interest of investors and integrity of the market, and that investors should also be properly informed as appropriate.
Index providers FTSE Russell, MSCI Inc and S&P Dow Jones Indices said they would stop the three Chinese telecom companies from benchmarks wiping
A combined $5.6 billion off the value of their Hong Kong-traded shares
The foreign ministry of china has previously said that it strongly opposes what it is called United States abuse of its power to abuse Chinese companies.
The New York Stock Exchange- after some flip-flop said it would delist three firms United States traded American Depositary Receipts.
