Reuters reports that the Trump administration is finalizing an executive order to prohibit US investments in Chinese firms that Washington says are owned or controlled by the Chinese military.
Reuters is citing three sources familiar with the matter, and write that the move is in a bid to ramp up pressure on Beijing after the US election.
Key notes
”The order, which could impact some of China’s biggest companies, including telecoms firms China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision, could be released as soon as Thursday, two US officials and one person familiar with the matter said.”
”The move is designed to deter US investment firms, pension funds and others from buying and selling shares of key Chinese firms.”
”Starting January 11, the order would prohibit any transaction by US persons in securities of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military earlier this year.”
Market implications
Markets will be focussed on the prospects of Joe Biden undoing much of the incumbent US President Donald Trump’s policy on China.
Therefore, such news is less impactful.
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