After a ban on making investments from the United States in companies that the Trump administration considers to be owned or linked to the Chinese military, 500 Hong Kong-listed structured products would be delisted by two of the largest leading firms of the country.
The three investment banks said in filings to the Stock Exchange of Hong Kong on Sunday evening that the targeted products are related to those from Chinese telecom firms China Mobile, China Telecom and China Unicom as well as local indexes which include those from the benchmark Hang Seng Index.
Last week the US Office of Foreign Assets Control (OFAC) issued statements in which it clarified a November order from President Donald Trump which effectively banned all Americans from investing in Chinese companies that the Trump administration considers to be owned by or have links to the Chinese military and the latest The de-listings are a consequence of those statements.
The three Chinese telecom companies were specifically included and mentioned in the initial executive order by the US president, the OFAC guidance cited in some of the filings said.
It was "working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers", said bourse operator Hong Kong Exchanges and Clearing in a statement.
More than 12,000 structured products listed in Hong Kong are there which have been issued by 15 companies.
It had stressed to the American investment banks that "any action taken by them should be necessary, fair, and having regard to the best interest of investors and integrity of the market, and that investors should also be properly informed as appropriate", Hong Kong's markets watchdog, the Securities and Futures Commission, said.
At the end of last week, the stocks of three companies were announced to be dropped off from their benchmarks by the index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices. That resulted in a total of $5.6 billion being shaved off the value of the Hong Kong-traded shares of three Chinese telecom companies that were announced to be delisted.
The list of Chinese companies that have already been dropped off from indexes because of the ban was extended by the inclusion of three Chinese companies - China Mobile, China Telecom and China Unicom Hong Kong.
A similar delisting decision against the three Chinese telecom companies were taken by the New York Stock Exchange but after some dillydallying and the three Chinese firms’ were US traded American Depositary Receipts are to be delisted on January 11.
The move by the trump administration was strongly opposed by China’s foreign ministry, which said that the move was an abuse of its power by the United States to oppress Chinese companies.
“This will undermine the United States’ interests and national image,” ministry spokeswoman Hua Chunying told a regular briefing.
(Source:www.moneycontrol.com)
The three investment banks said in filings to the Stock Exchange of Hong Kong on Sunday evening that the targeted products are related to those from Chinese telecom firms China Mobile, China Telecom and China Unicom as well as local indexes which include those from the benchmark Hang Seng Index.
Last week the US Office of Foreign Assets Control (OFAC) issued statements in which it clarified a November order from President Donald Trump which effectively banned all Americans from investing in Chinese companies that the Trump administration considers to be owned by or have links to the Chinese military and the latest The de-listings are a consequence of those statements.
The three Chinese telecom companies were specifically included and mentioned in the initial executive order by the US president, the OFAC guidance cited in some of the filings said.
It was "working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers", said bourse operator Hong Kong Exchanges and Clearing in a statement.
More than 12,000 structured products listed in Hong Kong are there which have been issued by 15 companies.
It had stressed to the American investment banks that "any action taken by them should be necessary, fair, and having regard to the best interest of investors and integrity of the market, and that investors should also be properly informed as appropriate", Hong Kong's markets watchdog, the Securities and Futures Commission, said.
At the end of last week, the stocks of three companies were announced to be dropped off from their benchmarks by the index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices. That resulted in a total of $5.6 billion being shaved off the value of the Hong Kong-traded shares of three Chinese telecom companies that were announced to be delisted.
The list of Chinese companies that have already been dropped off from indexes because of the ban was extended by the inclusion of three Chinese companies - China Mobile, China Telecom and China Unicom Hong Kong.
A similar delisting decision against the three Chinese telecom companies were taken by the New York Stock Exchange but after some dillydallying and the three Chinese firms’ were US traded American Depositary Receipts are to be delisted on January 11.
The move by the trump administration was strongly opposed by China’s foreign ministry, which said that the move was an abuse of its power by the United States to oppress Chinese companies.
“This will undermine the United States’ interests and national image,” ministry spokeswoman Hua Chunying told a regular briefing.
(Source:www.moneycontrol.com)
