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US President Donald Trump is driving three Chinese giants off Wall Street. Investors are responding by driving down stock prices in Hong Kong.
BAN: The Trump administration is blocking investment in companies allegedly linked to the Chinese military. This affects the share price of, among others, China Telecom. Here, outside the company’s Shanghai offices.
ALEX PLAVEVSKI / EPA
China’s three largest state telecommunications companies are falling in Hong Kong: China Telecom, China Mobile and China Unicom fell 4.2 percent, 4 percent and 3.6 percent, respectively.
The Trump administration, which has said it will take a hard line against China, is now trying to ban US investment in companies allegedly linked to the Chinese military. The New York Stock Exchange will remove the three companies from listing in the US city following a presidential order signed by Donald Trump in November.
The New York Stock Exchange began on Friday to implement measures to comply with the presidential order prohibiting the trading of exchanges of companies that Trump identifies as a “Chinese Communist Military Company.” Starting next Monday, the ban is scheduled to begin.
Beijing threatens to respond
Chinese authorities say, according to the Global Times state, they will respond by taking “the necessary measures.” The Commerce Ministry asserts that “the United States abuses national security and uses state power to crack down on Chinese companies” and that the measure does not conform to the rules and logic of the market, which not only hurts the legitimate rights of Chinese companies, but also the interests of investors in other countries, including the United States. ‘
The White House has yet to respond to CNBC inquiries on the matter. Incoming President Joe Biden says he wants to “hold the Chinese government accountable for abuses on trade, technology, human rights and other fronts.”
Mixed in Asia
There is no clear direction in the Asia Pacific stock exchanges on Monday morning.
The Chinese Caixin / Markit Purchasing Managers Index for the industry landed at 53.0 in December, meaning signs of higher temperatures in Chinese factories as the figure surpassed the 50 limit, which separates growth from decline. By comparison, the corresponding figure was 54.9 in November.
This is how the region’s stock exchanges work:
- Nikkei 225 in Tokyo falls 0.55 percent
- Hang Seng in Hong Kong rises 0.75 percent
- Kospi in Seoul up 2.42 percent
- Shanghai Composite rises 0.91 percent
- Shenzhen Composite rises 2.30 percent
- FTSE Straits Times in Singapore up 0.18 percent
- ASX 200 in Sydney is up 1.40 percent
