Finance News

The US postpones the ban on buying and selling in Chinese language shares with alleged army ties

BEIJING – The US Treasury Department announced Tuesday that it was postponing a ban on trading in the shares of companies allegedly linked to the Chinese military.

The new restrictions will take effect on June 11th, compared to the previous May 27th.

The move by the administration of US President Joe Biden extends the grace period for investors to comply with an investment ban first announced in November under former President Donald Trump. Only a handful of the names, mostly state-owned companies, are traded in the United States.

Earlier this month, the US agreed to remove the Hong Kong-listed Chinese smartphone manufacturer Xiaomi from the blacklist.

Another company on the list, telecommunications giant China Mobile, said earlier this month it is expected to be delisted from the New York Stock Exchange. The company then announced on Monday that it would issue yuan shares on the Shanghai Stock Exchange.

Chinese companies have rushed to go public in the US over the past 18 months despite the political overhang. At the end of April, a representative from the New York Stock Exchange announced that around 60 Chinese companies plan to list in the United States this year.

Related Articles