The US Government has ruled out the country’s ban on investing in Chinese giants Alibaba, Tencent or Baidu, by not including them on the list of companies banned for alleged reasons links with the Beijing Army and security services. The decision provides a respite for China’s top companies amid a campaign of Washington against him.
As reported on Thursday by The Wall Street Journal and the Financial Times, citing anonymous sources, the United States Treasury has imposed its criteria and has blocked a Pentagon and State Department attempt to blacklist some of China’s largest tech companies, which would have prevented US investors from holding their shares.
In this way, the still Secretary of the Treasury, Steven Mnuchin, has managed to counteract the arguments of the Secretary of State, Mike Pompeo, and the holder of Defense, Chris Miller.
The outgoing Administration of Donald Trump announced last November a list of one thirty Chinese companies That would veto Investors for their alleged support of the Beijing Army and the Beijing intelligence and security services.
As a consequence of this measure, the New York Stock Exchange announced last week its intention to exclude the three big Chinese state telephone companies: China Mobile, China Telecom and China Unicom, among other.
Alibaba and Tencent are two digital giants and the two Chinese companies with the highest market value, with a capitalization of more than 1.3 billion of dollars between the two; Baidu It is the Chinese search engine equivalent to Google.
U.S. depository receipts for Tencent rose 2.9% on Wednesday, while the shares of Alibaba listed in the United States increased a 4.3%. In Hong Kong on Thursday morning, Alibaba’s shares rose 4.5% and Tencent’s 4.4%.
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