In this file photo taken on March 8, 2018, the day's closing numbers are displayed after the closing bell of the Dow Industrial Average at the New York Stock Exchange in New York. (BRYAN R. SMITH / AFP)

S&P Dow Jones Indices said on Thursday it would remove Chinese companies including Hikvision from its products, becoming the latest index provider to do so following a Trump administration order restricting purchases of their shares.

S&P DJI said it would remove A-shares, H-shares and ADRs of 10 companies including Hikvision and Semiconductor Manufacturing International Corp from all equity indices prior to the market open on Dec 21.

S&P DJI said it would remove A-shares, H-shares and ADRs of 10 companies including Hikvision and Semiconductor Manufacturing International Corp from all equity indices prior to the market open on Dec 21

The company said it will also remove 11 securities issued by Chinese companies from its fixed income indices before Jan 1.

Hikvision and SMIC did not immediately respond to a request for comment.

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“The order ... may impact the ability of market participants to replicate S&P DJI Equity and Fixed Income indexes containing securities affected by the order,” S&P DJI said in a statement.

Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management in Tokyo, said that funds following the S&P indices “will have to sell. This goes beyond the routine annual changes to names on the index.”

“Once the passive funds start selling, the active funds will be inclined to do the same.”

S&P DJI’s move comes after index provider FTSE Russell said last week that it would remove eight Chinese firms from its products to comply with the US executive order, which barred US investors from buying securities of blacklisted firms starting in Nov 2021.

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The company said it had acted on feedback from index subscribers and other stakeholders.

The executive order, unveiled in November and first reported by Reuters, is designed to deter US investment firms, pension funds and others from buying shares of Chinese companies designated by the Defense Department as backed by the Chinese military.

Hikvision previously said that the US order’s decision to pursue it was “groundless”.

Hikvision shares in Shenzhen gained more than 4 percent in early afternoon trade on Thursday after the S&P DJI announcement. 

The Chinese Foreign Ministry had urged Washington to withdraw its decision to ban US investments in Chinese firms linked to the Chinese military, with Beijing vowing to safeguard the legitimate rights and interests of Chinese companies.

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"China urges the US to correctly view China's military-civilian integration policy and stop its wrong behavior of arbitrary suppression against certain Chinese companies under the pretext of national security," Foreign Ministry spokesman Wang Wenbin said last month.

The US government has been "viciously slandering" China's military-civilian integration, Wang said, adding that the unreasonable oppression of Chinese companies violates the principle of market competition and international trade rules.