News24
14 Jan 2021, 23:42 GMT+10
US officials deliberated but ultimately decided against banning American investment in Alibaba and Tencent, a person familiar with the discussions said, removing a cloud of uncertainty over Asia's two biggest corporations.
The Treasury Department blocked a Pentagon effort to add the two internet firms on grounds they aided the military, the person said, asking not to be identified discussing private talks.
Officials also debated blocking search leader Baidu but dropped the plan, the person added. Alibaba's Hong Kong stock climbed as much as 3.9% while Tencent rose almost 5% on news of the reprieve, which was first reported by the Wall Street Journal. Their dollar bond spreads tightened Thursday morning.
The decision removes uncertainty hanging over Chinese social media and gaming leader Tencent and Alibaba, the e-commerce titan founded by billionaire Jack Ma that's now under intense regulatory scrutiny by Beijing regulators. US President Donald Trump has signed an amended version of his executive order banning investment in Chinese military-linked companies, the White House said in a statement Wednesday that didn't mention any company by name.
Imposing a ban on the pair would have marked the most dramatic escalation yet by the outgoing administration, given the sheer size of the two firms and the difficulty unwinding positions. At more than $1 trillion, their combined market value is nearly twice the size of Spain's stock market, while the firms together account for about a 10th of the weighting for MSCI's emerging markets benchmark.
Trump's order banned trading in affected securities starting 11 January. If Biden leaves Trump's executive order in place, US investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by 11 November. And if the US determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.
Get a daily dose of Massachusetts Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Massachusetts Sun.
More InformationDOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...
JERUSALEM, Israel: Israeli Prime Minister Benjamin Netanyahu says that Israel's success in the war with Iran could open the door to...
NEW DELHI, India: India has decided not to allow a United Nations (UN) investigator to join the investigation into the recent Air India...
BONN, Germany: Despite widespread belt-tightening across the United Nations, nearly 200 countries agreed this week to increase the...
NEW YORK, New York - U.S. stock markets closed firmly in positive territory to start the week Monday, with the S&P 500 and Dow Jones...
WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...
LONDON, U.K.: A little-known investment fund based in the United Arab Emirates has emerged as the most prominent public backer of U.S....
SAN FRANCISCO, California: Across the U.S., a growing number of people are taking obesity treatment into their own hands — literally....
SAN FRANCISCO, California: Under pressure from European regulators, Apple has revamped its App Store policies in the EU, introducing...
NEW YORK CITY, New York: The U.S. dollar tumbled this week, hitting its lowest levels since 2021 against the euro, British pound, and...