Goldman and Fidelity Funds Sell Off Hikvision, Dahua Stock Over Xinjiang

By Charles Rollet, Published Mar 29, 2019, 10:09am EDT

Major US funds run by financial giants such as Fidelity and Goldman Sachs have sold their equity stakes in Hikvision and Dahua "as scrutiny mounts in Washington over how western capital markets are being used to fund the mass detention of millions of Muslim Uighurs in China", reports The Financial Times.

As first reported by IPVM, the two companies have won at least $1.2 billion in massive surveillance deals in Xinjiang since 2016. Hikvision, in particular, has won contracts which supply cameras to at least two of Xinjiang's notorious re-education camps and almost 1,000 mosques in a single county.

In this note, we examine the FT's report and any possible repercussions, including:

  • List of Funds
  • Reason for Divestment
  • Funds Response
  • Hikvision/Dahua Effects

List ** *****

****** ********** *********** **** ********, *** ** ****** that ***** ***** **** sold ***** *********/***** ****** "in ****** ******":

*** ** **** ****** two ****** ******* ******* funds *** **** *** divested:  *** ********** ***** Teachers’ ********** ****** (*******) *** *** *** York ***** ********’ ********** System (****** [**** ** longer *********]).

Funds ********

*** ** ****** **** all ** ***** ***** declined ** ******* ***** the ****. **** *** reached *** ** **** and **** ****** ** they *******.

Rising ******** - ****** *** *********

*** ** ******** **** the ***** *** ******* about *** ******** **** their *********/***** *********** ****** by *** *****' ********* Xinjiang ***********. 

****** **** ***** ********** ** ******** Xinjiang ************* ***** ******* ********* and *****. ************, ******* legislation ** ******* **** - ********* ***** ****** ****** Act- ************ ***** *** the ******** ** * US ********** ****** ***** lists:

all ******* ********* involved in the construction or operation of the ‘political education’ camps, or the provision or operation of surveillance technology or operations, across Xinjiang.

**** *** ****** **** Senator ***** ***** *** referring ** **** ** told *** **:

*** ** ********** ******require ******* ********* ********* ** *******’* ******* ******* ** ******** ***** **** ** *** ******* **********’* ******** ********* *** ***** ****** ******. American investors and pensioners have a right to know this information given it poses material, asymmetric risks to the reputations and valuations of Chinese companies.

*******, ******** ** ******** up ** ***** ***** of *** ***** ** well; ********* ** *** UK *** ****** **** called *** ************** *** divestment **** *********/***** **** Xinjiang. (**** ** *** **** Out ********* **** ***** Rights **********)

Impact ** *********

***** **** ** ***** have **** *********** ******* from ********* *** *****, in ***** **** ****** to ******* ******* ********** spending ** ********/************, *** only ** ******** *** also ** *********-***** *** ** **** video ************ ***** **** "Sharp ****".**** *****' ****** ******* record ***** ** ***** 2018 *** ***** ****** have **** ***** ** had ** *** **** for *** **-***** ***** war, ********* ***** **** ************ *** *****.

********* ***** ****** * chunk ** **** **** surveillance ******, ***** ** potentially * *** ******** financially *** ***** *****. The **** **** **** are ********* ***** ******** over ******** ** *** potential ********* ******** *******.

Impact ** *********/*****

**** ********** ***** ********* and ***** *** *** becoming ******** ***********, *** just ***********, *** ** their ******** **********. ***** this **** **** ****** effect ** *** *****' bottom ****, ** ***** hurt *** *****' ***** price *** ****** ***** overall **********.

********* ** ********** *** benefited **** * ******* flow ** ******* *****, as ***** ** *** FT:

********* ***outpaced *** ***** ******* *-***** companies in terms of cumulative investment inflows from overseas emerging market funds with a ***** $**** ******** by the end of February, according to Copley Fund Research

(**** -******* *-***** ************ *** ***** ****** in *** ******** ** Shenzhen ***** ********* ***** are ****** ** *** and, ***** ********, **** largely ************ ** ******* investors, ** ******* ** Chinese *-****** ***** *** traded ** ** *******.)

********* *** **** ******** raised ******* ** ******* markets, **** ** **** ******* **** ****** ******* ** ****. At *** **** **** bond **** ****** ********** unnoticed, *******, **** **** bond ** ** ******** today, ** ***** ****** raise ********** **** *********, politicians, *** ****** *** to ********.

*** ********* ** ******** is **** **********, ** somewhat *********. ** *** Western ******** **** *** FT:

* *** ** ********* talk ***** ******* ********* but **** ** ***** to ********* *** ******** they *** ***** ** fill ***** *****. ** is ****** ************.

Comments (4)

Update: The BBC has run a follow-up report calling out US Pension Funds that are still invested in Dahua and Hikvision.

Agree
Disagree
Informative
Unhelpful
Funny

Western pressure is forcing Dahua to hit third world markets hard. Here's a recent example were they "used" a presidents son to influence tenders in Africa.

From China to Krugersdorp: Andile Ramaphosa and the Bosasa 'billions'

Agree
Disagree
Informative: 2
Unhelpful
Funny

What a sad firm Dahua is the world should turn their back on them on mass

Agree: 1
Disagree
Informative
Unhelpful
Funny

I'm happy that our industry is gaining exposure and people are finally waking up. I can't tell you how much I die inside when our installers and customers tell us they don't care about Dahua or Hikvision or any of it, they just want a quick buck and no headaches. Things actually do matter besides money, especially how you get your money. My company always criticizes itself because our morals and ethics and discerning eyes always erode our profit margin... its tough to choose the right thing over easy profit... but we still do our best to try to always make the right choices.

For the record we left Dahua on our own due to the growing Security concerns, which all came to a head with the Mirai botnet. We were the ONLY American distributors of Dahua to issue a stop-ship until the problem was resolved. We've never sold Dahua since then. Hindsight is 2020 and I love being on the right side of this thing, even if we didn't foresee or predict the ethics violations, I'm glad we're not supporting that anymore.

Agree: 1
Disagree
Informative
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