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- An executive order signed by President Trump sent top Chinese stocks lower in Thursday trades, including China Mobile and China Telecom.
- The executive order is aimed at prohibiting US investments in Chinese firms that are determined to be owned or controlled by the country’s military.
- Specifically, the order prohibits US investment firms and pension funds from buying and selling shares of 31 Chinese companies that have been designated by the Pentagon as having military ties.
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An executive order signed by President Donald Trump on Thursday sent shares of Chinese companies sinking.
The order is aimed at limiting US investments in Chinese securities seen to have ties with or be controlled by the Chinese military and takes effect January 11, 2021.
It’s the latest rippled in rising tensions between China and the US, which have escalated since the signing of a trade deal and the outbreak of the COVID-19 pandemic at the start of this year.
Chinese telecom stocks like China Mobile and China Telecom saw the biggest downside moves in Thursday trades, with each falling as much as 4% and 8%, respectively.
According to Reuters, the executive order will specifically prohibit trades in the securities of 31 Chinese companies that have been designated by the Defense Department as being backed by the Chinese military.
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