Several American banking giants delisted hundreds of Hong Kong-listed structured products following clarification on an order from incumbent U.S. President Donald Trump on investments linked to China’s military.
Goldman Sachs and Morgan Stanley will delist 500 products in total, according to exchange filings, which noted the move was based on clarification by the U.S. Office of Foreign Assets Control.
Hong Kong Exchanges and Clearings said it was «working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers».
Military Ban
This is the latest move in the series of bans on investments linked to the Chinese military following reports of the possibility to include mainland tech leaders Alibaba and Tencent in the blacklist. Discussions remain underway between State and Defense Department officials.
Major telecom firms China Mobile, China Telecom and China Unicom Hong Kong are also expected to face delisting after a reversal by the New York Stock Exchange.
