U.S. postpones ban on trading Chinese stocks with alleged military ties

Finance

Jason Lee | Reuters

BEIJING — The U.S. Treasury said Tuesday it was postponing a ban on trading shares of companies with alleged links to the Chinese military.

The new restrictions take effect June 11, versus the prior date of May 27.

The move by U.S. President Joe Biden’s administration extends a grace period for investors to comply with an investment ban first announced in November under former President Donald Trump. Only a handful of the names, mostly state-owned companies, are traded in the U.S.

Earlier this month, the U.S. agreed to remove Hong Kong-listed Chinese smartphone maker Xiaomi from the blacklist.

But another company on the list, telecommunications giant China Mobile, said earlier this month it expected to delist from the New York Stock Exchange. The company subsequently said on Monday it would issue yuan-denominated shares on the Shanghai stock exchange.

Chinese companies have rushed to go public in the U.S. in the last 18 months despite the political overhang. In late April, a representative from the New York Stock Exchange said about 60 Chinese companies plan to list in the U.S. this year.

Articles You May Like

As Klarna and Affirm falter, a new breed of ‘buy now, pay later’ startups are stealing the spotlight
Fanatics is in talks to buy sports betting company Tipico, sources say
How much money do gas tax holidays actually save drivers? What we know, based on 3 states that put temporary suspensions in place
Roe v. Wade’s demise forces companies to grapple with health care plans, employee privacy and more
Polestar becomes latest electric vehicle maker to go public via SPAC merger