U.S officials are considering prohibiting Americans from investing in Alibaba Group Holdings and Tencent Holdings Ltd, according to Reuters. The move follows Trump’s executive order in November that bans U.S investors from buying shares of Chinese firms deemed to be controlled by its military.
- Targeting Asia’s two most valuable companies would be U.S. President Donald Trump’s most dramatic step in a raft of measures against Chinese companies during his final days in office.
- Investors are skeptical about banning Alibaba and Tencent as they are worth a combined $1.3 trillion, widely held by U.S. investors, and could cause financial and reputation damage on U.S stock markets.
- U.S move follows an earlier plan by the New York Stock Exchange to delist other three Chinese telco giants
Alibaba and Tencent stocks are currently declining. 9988: HKG is down 3.91%, 0700: HKG is down 4.69%
