ETF NEWS - ULTUMUS

Trump China Blacklist – ETF Impact

Written by Bernie Thurston | 18 December 2020

Hong Kong Listing

Following on from Trumps executive order blacklisting 35 Chinese companies, from being held by US investors. Obviously taking into account the issues that this would cause to the supply chain participants of indices or index replications, trying to trade one without involving a US entity could be a challenge. Thus the major index providers have set up a process to remove the restricted stocks from their universe.


This obviously has a trickle down impact to ETFs, thus we have decided to do a brief analysis of the stocks and the impact they will have on various ETFs / providers. We have just chosen the top three by weight of the individual stocks to get an impression of the overall impact.

For this report we have focussed on the HK listings.

SMIC – 0981.HK

Interestingly on this stock Hang Seng is unlikely to remove them from their indices but Ishares will have to remove them from their holdings.

CNOOC  – 0883.HK

China State Construction – 3311.HK

CHINA RAIL CONS ORD H – 1186.HK

CRRC Corp – 1766.HK

CHINA MOBILE ORD – 0941.HK

CGN Power – 1816.HK