US Banks to Eliminate Structured Products Listed on Hong Kong Stock Exchange Following Executive Order Impact

About 500 Structured Products Removed
Hong Kong Stock Exchange: "No Significant Negative Impact Expected"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Major U.S. banks such as Goldman Sachs, Morgan Stanley, and JP Morgan have decided to eliminate some of the structured products they had registered in Hong Kong in order to comply with the U.S. executive order signed by President Donald Trump that bans American investment in Chinese military-linked companies.

According to Bloomberg and other sources on the 11th, the Hong Kong Stock Exchange (HKEX) announced in a notice about expiring products that approximately 500 structured products offered by U.S. banks will be removed in accordance with the U.S. executive order. HKEX stated, "We are working closely with relevant parties to orderly terminate product sales and facilitate repurchase agreements."

HKEX also emphasized, "Hong Kong has over 12,000 structured products registered, making it the largest in the world," and added, "We do not believe that the termination of product sales by U.S. banks will have a significant adverse impact on Hong Kong's structured products market."

This decision by U.S. banks follows the executive order issued by President Trump last November, which prohibits Americans from investing in Chinese military-linked companies. Earlier, the New York Stock Exchange (NYSE) delisted China's three major telecom companies?China Mobile, China Telecom, and China Unicom?on the 6th (local time) based on this order. Two days later, on the 8th, MSCI (Morgan Stanley Capital International) and S&P Dow Jones Indices excluded the Hong Kong-listed shares of these Chinese telecom companies from their major indices.

Foreign media reported that President Trump is attempting to pressure China until the end of his term, and that this investment ban executive order has sparked backlash among American investors. The Wall Street Journal (WSJ) reported, "Although the executive order targeted the Chinese military, some American investors have become upset," highlighting cases where investors in Chinese telecom companies suffered losses and were forced to sell their shares.

This content was produced with the assistance of AI translation services.