Wall Street Abandon Sanctioned Chinese Shares

Wall Street firms operating in Hong Kong have indicated that they will reduce their exposure to Chinese companies included in a US ban on investing in companies that Washington considers linked to the Chinese military before the rules come into effect later Monday.

Goldman Sachs, JP Morgan and Morgan Stanley said in a notice to the Hong Kong Stock Exchange last night that they would write off 500 Hong Kong-listed products linked to China Mobile, China Telecom and China Unicom and local indices, including the main Hang Seng index. The three telecom operators are included in the local benchmark.