(Yicai Global) Dec. 16 -- MSCI will drop seven Chinese companies blacklisted by US President Donald Trump from its global stock indexes in the new year. It is the latest index compiler to say it will remove the securities from benchmarks.

The seven will be dropped after the close of trading on Jan. 5, New York-based MSCI said in a statement today. S&P Global Dow Jones Indices, FTSE Russell and Nasdaq have already announced similar moves.

The businesses affected include Semiconductor Manufacturing International Corporation [SHA: 688981; HKG: 0981], China’s top chipmaker, whose shares skidded today following media reports that its co-chief executive has quit unexpectedly.

Trump signed an executive order last month that will prevent US investors from owning stakes in the firms from Jan. 11. Executive Order 13,959 alleges a threat from securities investments that finance Chinese military firms.

Based on feedback from more than 100 market participants, the executive order may have a significant impact on the investment processes of global investors, MSCI said. Non-US market participants noted that the extensive presence of US entities, such as commercial banks, broker-dealers, and custodians, within their chain of financial intermediaries would significantly limit their ability to transact in the impacted securities.

The other firms MSCI will remove are: China Spacesat [SHA: 600118], China Railway Construction [SHA: 601186; HKG: 1186], CRRC [SHA: 601766; HKG: 1766], Hangzhou Hikvision Digital Technology [SHE: 002415], and Dawning Information Industry [SHA: 603019].

All of their shares closed lower today. Hikvision and China Spacesat fell 1.5 percent and almost 1.4 percent, respectively, while the mainland-traded shares of China Communications Construction and CRRC edged down 0.8 percent and 0.6 percent. 

Editor: Peter Thomas