S&P Dow Jones on Thursday said it would remove a total of 21 Chinese firms from its equities and bond indices that include Hikvision and SMIC, according to S&P Dow Jones press release. Securities from 10 Chinese companies will be deemed ineligible from equity indices prior to the market open on December 21, and S&P DJI will remove 11 additional securities in its fixed-income indices before open on January 1. 

  • The U.S.’s move seeks to deter its investment firms, pension funds, and others from buying shares of 31 Chinese firms designated by the Defense Department as backed by the Chinese military.
  • In November, the U.S. unveiled an executive order prohibiting U.S. investments in Chinese companies.
  • Last week, index provider FTSE Russell threatened to delete shares of Hikvision and several other Chinese companies from the FTSE Global Equity Index Series.

Dow Jones Industrial Average closed on Wednesday at 30,068.81