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LONDON (Reuters) - U.S. bank JPMorgan said it will exclude Huawei's dollar bonds from some its most influential investment indices from the end of next month, following the latest ratcheting up of U.S. sanctions on Chinese technology firms.
U.S. President Joe Biden's administration issued a new executive order https://www.federalregister.gov/documents/2021/06/07/2021-12019/addressing-the-threat-from-securities-investments-that-finance-certain-companies-of-the-peoples last week banning U.S. entities from buying or selling the publicly-traded securities of 59 Chinese companies with alleged ties to defense or surveillance.
"Huawei USD-denominated bonds will be excluded from J.P. Morgan fixed income indices (including the CEMBI and JACI families) since the issuing entities for these securities (Proven Glory Capital Ltd. and Proven Honour Capital Ltd.) are explicitly named and in scope of the Amended Order," JPMorgan said in a note to index users late on Tuesday.