US Banks Removed 500 China-Linked Products

US banks removed 500 China-linked products from the list. US banks, making a move to comply with US President Donald Trump's presidential order, are preparing to remove 500 Chinese-related products offered in Hong Kong. The effect of sanctions imposed by the USA on companies on the grounds that it is linked to the Chinese military and threatens national security is expanding day by day. US banks and fund managers have stepped up to comply with the current President Donald Trump's decree that has been implemented and prevents new investments. Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. are preparing to take 500 structured products off the lists in Hong Kong. According to Hong Kong Exchanges and Clearing Ltd., Hong Kong is home to the world's largest market for such products, with over 12,000 contracts. The products withdrawn from the market includes the Hang Seng Index, the upward and downward contracts that can be used with warrants traded in the Hang Seng China Companies Index, as well as China Mobile Ltd. contracts. The $ 14 billion Hong Kong fund managed by State Street Global Advisors Asia Ltd. will not make any new investments in these companies, after it has been stated that the companies subject to the ban are no longer "suitable" for US investors. The issue of how regulators, exchanges and intermediaries will implement the decree issued shortly before the end of Donald Trump's term is not clear yet. The New York stock exchange announced last week that it would remove China Mobile and two other Chinese telecom companies from the stock market. MSCI Inc. removed these stocks from indicative global indices on Friday and supported a hard sell. With this move, China Mobile's shares have reached the lowest level in 14 years. According to the decree signed by Trump after he decided to put pressure on China in the last days of his presidency, the shares of these companies will not be able to be bought by US citizens as of today. In addition, the US needs to sell the stocks in their portfolios until the November when the transactions will be frozen.