Infotech

Investors turn away from Chinese companies banned in US



Posted on Jan 8, 2021, 1:58 p.m.Updated Jan 8, 2021, 5:47 PM

Chinese companies listed in the United States can no longer ignore the growing pressure linked to Sino-American tensions. The three Chinese telecom giants – China Mobile, China Telecommunications and China Unicom – have already paid the price: they have lost more than 10% in two sessions following their exclusion from the indices managed by S & P Global and MSCI. The announcement prompted many index fund managers – including ETFs, which are very popular in the United States – to quickly sell their securities.

These decisions added to the nervousness of investors after the New York Stock Exchange’s about-faces on the subject, even as Chinese markets soared to new heights. In total, these three groups have lost more than $ 20 billion in capitalization since mid-November and the publication of the presidential decree prohibiting Americans from acquiring their securities from January 11.

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