Goldman, JPMorgan, M. Stanley to delist 500 HK-listed products after US ban

A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York January 24, 2014. REUTERS/Lucas Jackson/File Photo

U.S. banks Goldman Sachs JPMorgan and Morgan Stanley will delist 500 Hong Kong-listed structured products, following a U.S. ban on investments in companies Washington deems linked to China’s military.

The products are linked to telecom companies China Mobile, China Telecom and China Unicom and local indexes including the benchmark Hang Seng Index, the three investment banks said in filings to the Stock Exchange of Hong Kong on Sunday evening.

The delistings follow statements last week by the U.S. Office of Foreign Assets Control (OFAC) clarifying a November order from President Donald Trump that banned Americans from investing in Chinese companies that the U.S. considers to have links with China’s military, the filings said.

OFAC guidance cited in some of the filings said the three telecom companies were specifically included in the initial executive order.

Bourse operator Hong Kong Exchanges and Clearing said in a statement it was “working closely with the relevant issuers to ensure orderly delisting, and facilitate buyback arrangements being arranged by the issuers.”

There are over 12,000 structured products listed in Hong Kong issued by 15 companies.

Hong Kong‘s markets watchdog, the Securities and Futures Commission, said it had stressed to the 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.”

Index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices said last week they would cut the three Chinese telecom companies from benchmarks wiping a combined $5.6 billion off the value of their Hong Kong-traded shares on Friday.

The New York Stock Exchange – after some flip-flopping – last week said it would delist the three firms’ U.S.-traded American Depositary Receipts on Monday.

China’s foreign ministry has previously said it firmly opposes what it called U.S. abuse of its power to oppress Chinese companies.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.