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

Taking required minimum distributions? How to reduce the sting of selling in a down market
Why labor economists say the remote work ‘revolution’ is here to stay
‘This is a crisis.’ Why more workers need access to retirement savings
Jamie Dimon says Ukraine war shows we still need cheap, secure energy from oil and gas
Over $400 billion has been erased from the value of Europe’s tech industry this year