Economy

U.S. considering adding Alibaba, Tencent to China investment ban

U.S. considering adding Alibaba, Tencent to China investment ban”

"I stand with President Trump's commitment to protecting the privacy and security of Americans from threats posed by the Chinese Communist Party", Commerce Secretary Wilbur Ross said in a statement on the order. Alibaba's USA -listed shares rose 5.5 per cent over the Tuesday session and closed at $240.40 each.

"There is no systemic risk in China's financial system", said Ma, according to The Wall Street Journal. Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined $1.3 trillion, widely held by United States investors and the likely reputational and financial hit to U.S. stock markets. However, if the reports hold any merit, it will be disastrous to Alibaba and Tencent, which rely heavily on global investors.

Both Alibaba and Tencent's stocks also fell on Wednesday in NY, where the companies have a combined market capitalisation of over $1.3tn.

The government intervened in Ant Group's $35 billion IPO, and also launched an investigation into his company for anti-competitive practices.

Inc. sank 3.8% in Hong Kong, following a 7.7% drop in its ADRs. His executive order banning Alipay, WeChat and others from any transactions in the US will only be effective 43 days from now, well into Biden's first 90 days.

Beijing will take unspecified necessary measures to protect Chinese companies, Hua said, repeating a government statement made following previous USA sanctions announcements.

China's government on Wednesday accused Washington of misusing national security as an excuse to hurt commercial competitors after President Donald Trump signed an order banning transactions with payment services Alipay and WeChat Pay and six other apps.

While Tencent's overall investment strategy has remained consistent - a diversifying portfolio with a focus on digital entertainment - it has quietly stepped up efforts in areas outside its main gaming arena. The NYSE originally on December 31 announced plans to delist China Mobile Ltd, China Telecom Corp Ltd and China Unicom Hong Kong Ltd.

More news: Over a million people in Russian Federation have been vaccinated with Sputnik V

Those and this week's order take effect after President-elect Joe Biden is due to be sworn in January 20, leaving open the question of whether the government will go ahead with it.

The stock exchange chose to go ahead and delist them after U.S. Treasury Secretary Steven T. Mnuchin disagreed with its earlier shock decision to give the companies a reprieve. It allows USA authorities to remove foreign firms from stock exchanges if they fail to comply with US audit rules for three years.

How will a potential ban affect Alibaba and Tencent?

Shares in Alibaba and Tencent sank following a report that the Trump administration could prevent U.S. investment into the Chinese tech groups, risking a severe escalation in tensions between Washington and Beijing.

Recently, a piece of news hit the world which stated that the business tycoon Jack Ma has been missing and has not been seen in public since October 2020.

The companies said they had strictly followed laws, regulations, market rules and regulatory requirements since their original listings, which took place between 1997 and 2002, and two of the three said the NYSE's multiple policy changes had hurt the companies and their shareholders.

However, Tencent is "not as aggressive" as Ant when it comes to cementing its position in the Chinese financial market, according to TechCrunch, the person involved with Tencent's offshore fintech business. Closer scrutiny of mergers and acquisitions could add uncertainty over the growth of large internet firms within China.



Like this

loading...
loading...

Latest


09 January 2021
Philadelphia 76ers expect to lose multiple players to contact tracing
He scored 18 points by halftime as the Nets shot 45.4 per cent and scored 35 points off 20 Philadelphia turnovers. Nash said Durant would be able to return Sunday if he continues to test negative for the coronavirus until then.

09 January 2021
US leases long-sought Alaska oil rights in Trump's final days
With tracts ranging in size from 23,446 to 59,410 acres (9,488 to 24,042 hectares), the smallest possible winning bid is $586,150. After decades of controversy, the sale was finally authorised by the US Congress in 2017 as part of a major package of tax cuts.

09 January 2021
Conor McGregor promises ‘masterpiece’ vs Dustin Poirier
It's an easy destination to get to, a fun destination to go to, and we can just (expletive) blow the doors off this thing. Dana White was on board, everybody was on board. "I'm going to meet with Khabib while I'm there".

09 January 2021
Mercedes-Benz reveals full-width (1 410 mm!) MBUX Hyperscreen
The system can also load up to seven different driver profiles, so you can customize how you'd like the interface to appear. Mercedes-Benz says there's no need to worry as the glass itself is rendered at temperatures of 650 degrees Celsius.

09 January 2021
Redmi Note 9T 5G launched with Mediatek Dimensity 800U processor
The phone is powered by a MedaTek Dimensity 800U processor with an integrated 5G modem that supports both SA and NSA networks. It could feature a 64-megapixel primary camera, and offer up to 8GB of RAM and 128GB of internal storage.

09 January 2021
IPhone 12 Costs $431 to Make, 26% More Expensive than iPhone 11
Apple also is said to have adopted a new battery board that is reportedly 40-50% cheaper than the equivalent iPhone 11 part. Apple also diversified its supply sources to save costs and split memory orders between industry leaders, as per the report.

09 January 2021
Apple CEO Tim Cook’s made $15 million past year
Apple said that Cook earned 256 times as much as its median employee, who earned $57,783 in 2020. In the SEC filing, Apple also revealed that Cook is set to get a long-term equity award in 2021.

09 January 2021
United States police officer dies following clash with pro-Trump mob
About 90 minutes later, police said demonstrators got into the building and the doors to the House and Senate were being locked. Sicknick returned to his division office and collapsed, the report said .

09 January 2021
Koeman thrilled with Messi, Pedri partnership against Bilbao
The Dutchman also praised Messi , who produced arguably his best performance of the season and was unlucky not to grab a hat trick.

09 January 2021
Anthony Joshua has 'a confidence issue', according to Tyson Fury
It is the night boxing longs for in 2021 but there are problems to solve before punches can be thrown. Fury believes that he can take advantage of these confidence issues and get the better of Joshua .