The Donald Trump administration’s measures against Chinese companies



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* Money managers say that the sale of prohibited stocks by US investors could affect prices in the short term, but they do not see big consequences yet and say that the fine print could allow them to circumvent some of the trade restrictions.

* Index creators FTSE Russell, S&P Dow Jones Indices and MSCI have removed some of the publicly traded companies from index products, weighing on their share price as passive investors sell.

* The New York Stock Exchange said it would delist China Mobile, China Telecom Corp, and China Unicom on January 11 and index providers say they will delist them, leading to sharp declines in the share price.

* Shares of Tencent and Alibaba also fell after it was reported that the US could extend investment bans on them.

* Investors have moved the positions of Chinese companies off the US charts, saying there is a risk that more Chinese companies will be affected.

* Elsewhere, widely held stocks, such as SMIC Hong Kong stocks, have experienced modest price pressure, while others such as Hikvision have gained in recent weeks.
Response from China

* China has described the US measures as rampant oppression of its companies, said they lack evidence, and called on the US to stop abusing the concept of national security.

* In response to reports of sanctions that are extended to Tencent or Alibaba, China said it would take necessary measures to safeguard the rights and interests of companies.

* Hikvision has called its inclusion on the Department of Defense list “unfounded” and other firms have issued similar strong statements.

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