President Donald Trump has sought to bar U.S. investors from buying the securities of Chinese companies with ties to the military of Communist China.
Trump signed an executive order on Thursday evening that bans as of Jan. 11, 2021, securities transactions in 31 companies already identified as having links with the Chinese military.
It’s a short and simple order. A simple order with complex ramifications that will sweep through Wall Street.
I said in September 2019 that pressure was building over Communist China’s access to U.S. capital markets. It may have taken a year, but this is finally a concrete move to cut off access to Wall Street for state-linked Chinese companies.
The enormous Chinese telecoms China Mobile (CHL) and China Telecom (CHA) are included on the list of 31 affected companies. Both are listed on the New York Stock Exchange, which essentially will become pointless if U.S. investors are