United States: Executive Order 13959 as amended - Finance of Communist Chinese Military Companies - Update X

30.07.2021

Note: This announcement, originally published on 7 January 2021 and updated on 8 January, 28 January, 24 February, 8 March, 15 March, 7 May 2021 and 28 May, 10 June and 16 July 2021, has been further updated to remove ISIN US16890W1080.

Clearstream Banking1 informs customers that United States Executive Order 14032, issued by President Biden on 3 June 2021, recasts and clarifies Executive Order 13959 as amended (the “Executive Order” or "E.O."), under which transactions involving the purchase by United States persons2 (“U.S. persons”) of securities issued by companies on the Non-SDN Chinese Military-Industrial Complex Companies List published by the Office of Foreign Assets Control (OFAC), as well as derivatives of, and securities which provide an economic exposure to, such OFAC-listed securities (collectively, “CMIC Securities”), are prohibited from 2 August 2021 12:00 AM U.S. Eastern Daylight Time (EDT).

Divestment from CMIC- securities by U.S. persons to non-U.S. persons is, however, permitted for 365 days following the listing of the CMIC entities (that is, starting from 3 June 2021).

The restrictions applicable to any entity which may be identified in the future as a CMIC would take effect at 12:01AM EDT 60 days after its identification. Any divestment from the securities issued by newly identified CMICs in the future could be made for 365 days from the effective date of the listing of such entities.

For any settlement instructions with the trade date 2 August 2021 (or thereafter) to receive, with or without payment, or to deliver to the domestic market, in respect of the below securities, Clearstream Banking customers must provide a representation of sanctions compliance in the narrative field of their instruction (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing their instruction ID. The required sanctions representation wording is as follows: “EO13959COMP We represent this instruction is compliant with U.S. E.O. 13959 as amended and is not a sale to or an acquisition by or for a U.S. person in breach of E.O.13959". For field :70E::SRPO// and due to the 70-character space restriction of that field, Clearstream Banking customers can provide the key word “EO13959COMP” in this field to denote that they have ensured the full sanctions compliance of the instruction with E.O. 13959 as amended.

Common code

ISIN

Issuer name

Restrictions effective from Trade Date

5354820

CNE100000395

CSSC Offshore & Marine Engineering (Group) Co Ltd

2 August 2021

11342582

US16945R1041

China Unicom (Hong Kong) Ltd

2 August 2021

11399207

HK0941009539

China Mobile Limited

2 August 2021

11345018

US16941M1099

China Mobile Limited

2 August 2021

12550260

US1261321095

CNOOC Ltd

2 August 2021

15712864

CNE1000002V2

China Telecom Corp Ltd

2 August 2021

15709260

US1694261033

China Telecom Corp Ltd

2 August 2021

19005836

HK0883013259

CNOOC Ltd

2 August 2021

18777754

US81663N2062

Semiconductor Manufacturing International Corp

2 August 2021

27775195

CNE1000002F5

China Communications Construction Company Ltd

2 August 2021

123327519

XS1233275194

Proven Honour Capital Ltd

2 August 2021

140181676

XS1401816761

Proven Honour Capital Ltd

2 August 2021

154216812

KYG8020E1199

Semiconductor Manufacturing International Corp

2 August 2021

156742350

XS1567423501

Proven Glory Capital Ltd

2 August 2021

156742376

XS1567423766

Proven Glory Capital Ltd

2 August 2021

35053794

CNE100000981

China Railway Construction Corporation Ltd

2 August 2021

7975040

CNE1000003T4

Nanjing Panda Electronics Company Ltd

2 August 2021

39591812

HK0000049939

China Unicom (Hong Kong) Ltd

2 August 2021

210182845

XS2101828452

Semiconductor Manufacturing International Corp

2 August 2021

Instructions without the required representation of sanctions compliance may not be able to settle or may experience delays in settlement, including at domestic market level.

Customers should take note that the securities listed in this communication will not be made eligible for collateral or lending purposes.

Notwithstanding the above requirements, customers are reminded that according to the Clearstream Banking General Terms and Conditions, Clearstream Banking customers are responsible for ensuring that all instructions settled by them through Clearstream Banking comply with applicable laws, including sanctions.

As a matter of good practice, customers should also observe any investment or selling restrictions (for example, regarding U.S. investors) stipulated in the securities issuance documentation. This includes the documentation covering for example, Structured Products, ETFs and Investment Funds. Clearstream Banking customers therefore need to ensure that instructions in this context are also in compliance with U.S. E.O.13959 as amended and do not represent a sale to or an acquisition by or for a U.S. person in breach of E.O.13959 as amended.

Under Clearstream Banking's terms of business, customers are further reminded that, by engaging in or settling any transaction in CMIC Securities including exchange-traded instruments using facilities provided by Clearstream Banking, customers represent, and agree that they will be deemed to reconfirm each time they instruct involving CMIC Securities using such facilities, that they are aware of the restrictions imposed by E.O.13959 as amended, that they have conducted reasonable due diligence on the parties to the transaction and that the transaction is permissible under E.O.13959 as amended.

Further information

For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.

In addition, new and amended FAQs issued by the US Treasury Department’s OFAC, as well as the CMIC Companies list, are available on the OFAC website here.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

2. A United States (U.S.) person is “a U.S. citizen, a U.S. permanent resident alien, an entity organised under the laws of the U.S. (including its foreign branches) or any individual or entity in the United States".