Chin Tech Tumble as Trump Investigates Scorched Earth Policy Chinese Tech Stocks Tumble as Trump Investigates Scorched Earth Policy
September 28, 2019
https://wccftech.com/chinese-tech-stocks-tumble-as-trump-investigates-scorched-earth-policy/
...President Trump is apparently investigating ways that it can stop American money ending up in China and Chinese companies. This is said to include the possibility of:
- Forcibly delisting Chinese companies from US stock exchanges.
- Stopping US government pension funds from investing in the Chinese market.
- Stopping US index companies such as MSCI (NYSE:MSCI) from including Chinese companies in their indices.
It’s not immediately apparent how Trump would go about achieving this, but the net effect would be clear as billions of dollars would no longer be available to Chinese companies. US listed Chinese stocks like Alibaba, Baidu, JD.Com(NASDAQ:JD) and Tencent (OTCMKTS:TCEHY) among others all dipped on the reports with Alibaba losing over $20 billion in market cap and finishing the day down over 5%. In addition, the Yuan slipped against the dollar further beyond the 7:1 level....
I think that should these above financial moves be implemented by the US (and to deny their possibility is to deny both the unpredictability of the present administration and its need for a 'result' in these trade issues, before the next election) some sort of severe reaction by the Chinese should be anticipated. It is extremely doubtful that the Chinese could wait these drastic actions against their companies out in the hope of a change in US administration in the next 14 months. The Chinese are short of remaining 'weapons' to react and anything done must have a meaningful and observable impact on the US; RE sanctions would be looming for the US and potentially any global suppliers to them.
https://rareearthsinvestor.discussion.community/post/chaos-and-the-rare-earths-sector-10266661?pid=1309651321