Friday, September 27, 2019

White House deliberates block on all US investments in China

The White House is weighing some curbs on U.S. investments in China, a source familiar with the matter told CNBC. This discussion includes possibly blocking all U.S. financial investments in Chinese companies, the source said.

It's in the preliminary stages and nothing has been decided, the source said.

Restricting financial investments in Chinese entities would be meant to protect U.S. investors from excessive risk due to lack of regulatory supervision, the source said.

The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume on Oct. 10 in Washington.

The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.

Bloomberg News first reported earlier on Friday that Trump administration officials are considering ways to limit U.S. investors' portfolio flows into China, including delisting Chinese companies from American stock exchanges and putting a limit on U.S. government pension funds' exposure to the Chinese market.

Shares of Alibaba, Baidu and other Chinese companies plunged following the news.


https://www.cnbc.com/2019/09/27/white-house-deliberates-block-on-all-us-investments-in-china.html

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