President Trump is increasing pressure on China, and this time he's targeting capital markets. 

Continue Reading Below

On Thursday, Trump signed an executive order banning Americans from investing in a group of Chinese companies his administration says supply and support China’s military.

The order blocks American companies and individuals from owning shares directly or through funds that include any of reportedly 31 companies identified by the U.S., including large state-run aerospace, shipbuilding and construction companies as well technology companies.

CORONAVIRUS RECOVERY WILL STALL SAYS HARVARD ECONOMIST

Although the executive order did not mention specific companies by name, shares of technology and telecom companies, with significant government control, were lower, including China Telecom, China Mobile and China Unicom.

CHINA-US TRADE WAR: LATEST NEWS

TickerSecurityLastChangeChange %CHACHINA TELECOM34.36-1.94-5.34%CHLCHINA MOBILE LTD.33.09-1.39-4.03%CHUCHINA UNICOM LTD.6.80-0.34-4.76%TD Ameritrade Stock Table

Some of these companies are listed on major U.S. exchanges, including the New York Stock Exchange which is owned by ICE and the Nasdaq.

The Nasdaq and the New York Stock Exchange both declined to comment when reached by FOX Business.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

TickerSecurityLastChangeChange %ICEINTERCONTINENTAL EXCHANGE INC.98.31-1.68-1.68%NDAQNASDAQ OMX GROUP INC126.85-2.94-2.27%TD Ameritrade Stock Table

Members of Congress have also been advocating for tougher regulations around the Chinese.

Rep. Jim Banks (R-IN) authored a bill that helped shape Trump's E.O., according to his spokesperson.

"On one hand, Congress is asking taxpayers to help grow our military so we can compete with China. On the other hand, large U.S. investment funds are dumping U.S. dollars into China’s military industrial base. We need to end our cognitive dissonance and stop funding the rise of our chief global adversary,” Banks said in June.

CLICK HERE TO READ MORE ON FOX BUSINESS

Source Link:
https://www.foxbusiness.com/markets/trump-to-ban-americans-from-investing-in-chinese-companies

[0,"neutral"]

Comments

comments

Advertisement