SMICY - S&P Dow Jones Indices removing SMIC other Chinese companies from indexes

S&P Dow Jones Indices has started removing Chinese companies from its indexes following a Trump administration executive order that deters investment in companies designated as backed by China's military.Among 10 companies whose mainland, Hong Kong and ADR shares will be removed by Dec. 21 is top chip firm Semiconductor Manufacturing International (SMICY), which was put on a blacklist at the beginning of the month.And 18 Chinese companies will be removed from fixed income indexes by Jan. 1.“The order ... may impact the ability of market participants to replicate S&P DJI Equity and Fixed Income Indices containing securities affected by the order,” S&P DJI says."The demand is so great in China that SMIC will continue to operate and grow revenues during this period of embargos, trade wars, and blacklists for as long as they last," Robert Castellano wrote on Seeking Alpha last week.

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S&P Dow Jones Indices removing SMIC, other Chinese companies from indexes