Overview

EXCLUSION LIST| PRESIDENTIAL ORDER 13959– CHINA MILITARY COMPANIES | Latest updated 17 January 2022

On 17 December 2020, Solactive AG published a Market Consultation on the US Presidential “Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies”; issued on November 12, 2020 (the “ORDER”).

It was concluded (https://www.solactive.com/result-of-market-consultation-presidential-order-chinese-companies-5th-january2021/) that the ORDER will have a significant impact on the investment processes of global investors (both, U.S. investors and non-U.S. investors) with regard to the investability of the AFFECTED SECURITIES.

Given these concerns and in order to ensure that Solactive Indices remain investible Solactive AG has decided to delete the AFFECTED SECURITIES from Solactive. The removal of the AFFECTED SECURITIES will be separately announced as extraordinary corporate actions and will be applied to Solactive administered Indices.

In addition, all securities deemed as AFFECTED SECURITIES will be listed in the below exclusion list (the “EXCLUSION LIST”) and generally excluded from the index universe or starting universe, respectively, of all Solactive Indices and will not be eligible in any index selection.

List of AFFECTED SECURITIES:

TICKER NAME SEDOL ISIN Restriction Effective
002389.SZ Aerospace CH UAV Co Ltd B52RWN0 CNE100000N20 02-Aug-21
002389.ZK Aerospace CH UAV Co Ltd BD5LZ25 CNE100000N20 02-Aug-21
600501.SH Aerosun Corp BP3RK80 CNE000001857 02-Aug-21
600501.SS Aerosun Corp 6355890 CNE000001857 02-Aug-21
601606.SH Anhui Great Wall Military Industry Co Ltd NULL CNE1000036L1 02-Aug-21
601606.SS Anhui Great Wall Military Industry Co Ltd BGB4PG3 CNE1000036L1 02-Aug-21
600862.SH Avic Aviation High Technology Co Ltd BYYFJL2 CNE000000GZ0 02-Aug-21
600862.SS Avic Aviation High Technology Co Ltd 6628439 CNE000000GZ0 02-Aug-21
600765.SH AVIC Heavy Machinery Co Ltd BP3R9Q1 CNE000000N22 02-Aug-21
600765.SS AVIC Heavy Machinery Co Ltd 6397609 CNE000000N22 02-Aug-21
002179.SZ AVIC Jonhon Optronic Technology Co Ltd B28T7X4 CNE1000007T5 02-Aug-21
002179.ZK AVIC Jonhon Optronic Technology Co Ltd BD5CHR7 CNE1000007T5 02-Aug-21
600760.SH Avic Shenyang Aircraft Co Ltd BF2DZ39 CNE000000MH6 02-Aug-21
600760.SS Avic Shenyang Aircraft Co Ltd 6800709 CNE000000MH6 02-Aug-21
000768.SZ Avic XiAn Aircraft Industry Group Co Ltd 6004017 CNE000000RF9 02-Aug-21
000768.ZK Avic XiAn Aircraft Industry Group Co Ltd BD5CPB7 CNE000000RF9 02-Aug-21
300474.SZ Changsha Jingjia Microelectronics Co Ltd BYNSFF8 CNE100002664 02-Aug-21
300474.ZK Changsha Jingjia Microelectronics Co Ltd BD76153 CNE100002664 02-Aug-21
600879.SH China Aerospace Times Electronics Co Ltd BP3R8W0 CNE000000J93 02-Aug-21
600879.SS China Aerospace Times Electronics Co Ltd 6981789 CNE000000J93 02-Aug-21
600372.SH China Avionics Systems Co Ltd BP3R3Y7 CNE0000018C0 02-Aug-21
600372.SS China Avionics Systems Co Ltd 6371896 CNE0000018C0 02-Aug-21
1800.HK China Communications Construction Co Ltd B1JKTQ6 CNE1000002F5 08-Jan-21
601800.SH China Communications Construction Co Ltd BP3R3C5 CNE100001FN5 08-Jan-21
601800.SS China Communications Construction Co Ltd B6Y7DS7 CNE100001FN5 08-Jan-21
600764.SH China Marine Information Electronics Co Ltd BMVB533 CNE000000N30 02-Aug-21
600764.SS China Marine Information Electronics Co Ltd 6368092 CNE000000N30 02-Aug-21
0941.HK China Mobile Ltd 6073556 HK0941009539 08-Jan-21
601611.SH China Nuclear Engineering & Construction Corp Ltd BYV1VD9 CNE100002896 08-Jan-21
601611.SS China Nuclear Engineering & Construction Corp Ltd BYY7YM4 CNE100002896 08-Jan-21
1186.HK China Railway Construction Corp Ltd B2PFVH7 CNE100000981 08-Jan-21
601186.SH China Railway Construction Corp Ltd BP3R381 CNE1000009T1 08-Jan-21
601186.SS China Railway Construction Corp Ltd B2PPPG4 CNE1000009T1 08-Jan-21
601698.SH China Satellite Communications Co Ltd BK4XS55 CNE100003PX9 02-Aug-21
601698.SS China Satellite Communications Co Ltd BK942H3 CNE100003PX9 02-Aug-21
601989.SH China Shipbuilding Industry Co Ltd BP3R2R3 CNE100000J75 02-Aug-21
601989.SS China Shipbuilding Industry Co Ltd B4X9DB3 CNE100000J75 02-Aug-21
600482.SH China Shipbuilding Industry Group Power Co Ltd BP3RG71 CNE000001KB1 02-Aug-21
600482.SS China Shipbuilding Industry Group Power Co Ltd B01WHX6 CNE000001KB1 02-Aug-21
600118.SH China Spacesat Co Ltd BP3R5Y1 CNE000000SM3 08-Jan-21
600118.SS China Spacesat Co Ltd 6018858 CNE000000SM3 08-Jan-21
0728.HK China Telecom Corp Ltd 6559335 CNE1000002V2 08-Jan-21
601728.SH China Telecom Corp Ltd BP5XFW5 CNE100004QG0 20-Jan-22
601728.SS China Telecom Corp Ltd BMY9QQ4 CNE100004QG0 20-Jan-22
0762.HK China Unicom Hong Kong Ltd 6263830 HK0000049939 08-Jan-21
0883.HK CNOOC Ltd B00G0S5 HK0883013259 08-Jan-21
002189.SZ Costar Group Co Ltd B292Z16 CNE100000882 02-Aug-21
002189.ZK Costar Group Co Ltd BD5CQW5 CNE100000882 02-Aug-21
0317.HK CSSC Offshore & Marine Engineering Group Co Ltd 6393317 CNE100000395 02-Aug-21
600685.SH CSSC Offshore & Marine Engineering Group Co Ltd BP3R1T8 CNE000000BP2 02-Aug-21
600685.SS CSSC Offshore & Marine Engineering Group Co Ltd 6393243 CNE000000BP2 02-Aug-21
603678.SH Fujian Torch Electron Technology Co Ltd BMTCXF6 CNE100001TY3 02-Aug-21
603678.SS Fujian Torch Electron Technology Co Ltd BV86W11 CNE100001TY3 02-Aug-21
002025.SZ Guizhou Space Appliance Co Ltd B01Z1V1 CNE000001KG0 02-Aug-21
002025.ZK Guizhou Space Appliance Co Ltd BD5C7T9 CNE000001KG0 02-Aug-21
002415.SZ Hangzhou Hikvision Digital Technology Co Ltd B450X03 CNE100000PM8 08-Jan-21
002415.ZK Hangzhou Hikvision Digital Technology Co Ltd BD5CPQ2 CNE100000PM8 08-Jan-21
600967.SH Inner Mongolia First Machinery Group Co Ltd BP3RB43 CNE000001HP7 02-Aug-21
600967.SS Inner Mongolia First Machinery Group Co Ltd B0148Q2 CNE000001HP7 02-Aug-21
600316.SH Jiangxi Hongdu Aviation Industry Co Ltd BP3R8J7 CNE0000015N3 02-Aug-21
600316.SS Jiangxi Hongdu Aviation Industry Co Ltd 6304375 CNE0000015N3 02-Aug-21
0553.HK Nanjing Panda Electronics Co Ltd 6623371 CNE1000003T4 08-Jan-21
600775.SH Nanjing Panda Electronics Co Ltd BP3R1W1 CNE000000NB7 08-Jan-21
600775.SS Nanjing Panda Electronics Co Ltd 6617567 CNE000000NB7 08-Jan-21
600435.SH North Navigation Control Technology Co Ltd BP3RB54 CNE000001F88 02-Aug-21
600435.SS North Navigation Control Technology Co Ltd 6649946 CNE000001F88 02-Aug-21
0981.HK Semiconductor Manufacturing International Corp BDFBM13 KYG8020E1199 08-Jan-21
688981.SH Semiconductor Manufacturing International Corp NULL CNE1000041W8 08-Jan-21
688981.SS Semiconductor Manufacturing International Corp BLN7Y13 CNE1000041W8 08-Jan-21
003009.SZ Shaanxi Zhongtian Rocket Techonology Co Ltd BMVZYC7 CNE1000046W7 02-Aug-21
003009.ZK Shaanxi Zhongtian Rocket Techonology Co Ltd NULL CNE1000046W7 02-Aug-21
300114.SZ Zhonghang Electronic Measuring Instruments Co Ltd B4XVC89 CNE100000T08 02-Aug-21
300114.ZK Zhonghang Electronic Measuring Instruments Co Ltd BMTCVY1 CNE100000T08 02-Aug-21
300188.SZ  XIAMEN MEIYA PICO INFORMAT-A   CNE100001120 14-Feb-22
300188.ZK  XIAMEN MEIYA PICO INFORMAT-A   CNE100001120 14-Feb-22
300367.SZ  NETPOSA TECHNOLOGIES LTD-A   CNE100001S40 14-Feb-22
300367.ZK  NETPOSA TECHNOLOGIES LTD-A   CNE100001S40 14-Feb-22
300603.SZ  LEON TECHNOLOGY CO LTD -A   CNE100002Q17 14-Feb-22
300603.ZK  LEON TECHNOLOGY CO LTD -A   CNE100002Q17 14-Feb-22
603019.SH  DAWNING INFORMATION INDUST-A   CNE100001TW7 14-Feb-22
603019.SS  DAWNING INFORMATION INDUST-A   CNE100001TW7 14-Feb-22

 

 

January 05, 2021. Solactive restricted date January 08, 2021: Initial restricted list

Update: January 07, 2021. Solactive restricted date January 12, 2021: Three additional securities

Update: January 11, 2021. Solactive restricted date January 15, 2021: Addition of CNOOC Ltd

Update: March 15, 2021: Tranche 5 Presidential Order sanctions were initially announced on January 14, 2021 to become effective by March 15, 2021. On March 14,2021 it was announced by OFAC that the restrictions for Xiaomi Corporation were temporarily suspended due to an ongoing court case, pending the outcome of the court action Solactive’s previously announced restriction will remain in place. Additionally Solactive will maintain the already announced restriction date for Luokung Technology Corp, and will not follow the delayed timeline resulting from the delisting of Luokong Technology Corporation (LKCO) and listing of Luokung Technology Corp. (LKCO) by the Secretary of Defense on March 9, 2021.

Update: May 18, 2021: On January 27, 2021 the US Treasury issues the General License 1A (authorizing activities that would otherwise be prohibited) for entities whose name closely matches, but does not exactly match, the name of a Communist Chinese military company as defined by section 4(a) of E.O. 13959, through 9:30 a.m. eastern daylight time, May 27, 2021. An extension was provided on May 18, 2021 by General License 1B, through June 11, 2021. The Below list of stocks are not currently restricted for Solactive indices but have been identified as potential candidates for exclusion following the lapsing of the existing general license. 

Update: May 27, 2021: Xiaomi Corporation, 1810.HK has been removed from Solactive’s exclusion list following the announcement on May 25, 2021, that the final decision of the U.S. District Court for the District of Columbia was to vacate the U.S. Department of Defense’s designation of Xiaomi Corporation as a “Communist Chinese Military Company”. Xiaomi Corporation will be available for future selection in all Solactive indices.

Update: June 7, 2021: E.O. 13959 has been updated and expanded. President Biden has listed 59 entities subject to the E.O.’s prohibition which make up the newly published NON-SDN CHINESE MILITARY-INDUSTRIAL COMPLEX COMPANIES LIST (NS-CMIC List). Solactive will be updating its restricted list in the coming days. The pending adaption’s for June 11th will not be applied. The implementation of any new restrictions is expected to take effect on August 02, 2021.

Update: June 11, 2021: Based on President Biden’s update to E.O. 13959 of June 03, 2021 (E.O. 14032) and the publication by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) of the NS-CMIC List, Solactive has made several changes to its restricted list.

Solactive has removed the following five securities from the exclusion list, making them eligible for inclusion in future index compositions: 

  • China United Network Communications Group Co Ltd
  • CRRC Corp
  • Dawning Information Industry Co (Sugon)
  • ADVANCED MICRO-FABRICATION EQUIPMENT INC (AMEC)
  • Luokong Technology Corp (LKCO)

The 11 Names that were originally restricted by Solactive and remain restricted under the update E.O. will retain their restricted status throughout.

24 additional names have been added to the exclusion list, with restriction taking effect prior to the Executive Order effective date of August 2, 2021.  

Update: July 09, 2021:  The effective date for removals of restricted stocks from Solactive Administered Indices has been set to (open) July 29, 2021.

Update: December 20, 2021:  On 16th December 2021 the CMIC list was extended, 8 additional instruments have been added to the Solactive exclusion list, with restriction taking effect on February 14th 2022.

Update: January 17, 2022:  Solactive added CHINA TELECOM CORP LTD A shares (CNE100004QG0 /  CNE100004QG0) to the restricted list; due to its name directly matching the previously restricted instrument 0728.HK/CNE1000002V2  specifically identified in the CMIC list. 
The restriction takes effect on January 20th 2022.