Trump’s 11th-hour ban on Chinese stocks deprives US funds of some of the biggest returns and payouts in world’s second-largest market
- US President Donald Trump’s order to prohibit American investors from trading Chinese companies with military ownership will affect relevant listed units totalling US$440 billion in market cap
- The sanction will make US fund managers miss out on some of China’s publicly traded companies that deliver most decent returns and are most generous in dividend payouts
Donald Trump’s executive order banning American investors from holding stakes in 31 Chinese companies, expected to take effect nine days before he leaves office, would deprive US funds of some of the biggest returns and most generous dividend payouts in the world’s second-largest capital market.
“It is an overhang,” said Hong Hao, managing director of Bocom International Holdings in Hong Kong. “But most think Trump is on his way out, and the stock reaction isn’t as negative as it was.”
Hangzhou Hikvision, the maker of surveillance cameras used by global law enforcement agencies, has returned 27 per cent every year to shareholders since its shares began trading in 2010, even as the Trump administration put it on a sanctions list for supplying Chinese police with facial recognition technology in the restive Xinjiang region.