China is increasingly decoupling from the global economy

Beijing, Berlin, Düsseldorf Mostly once a year, China’s head of state and party leader Xi Jinping gives a speech to high-ranking ministry and provincial leaders at the Central University of the Communist Party, which sets the course for the year. But this time it had a special meaning. Because the five-year plan is currently being finalized, which should set the course for the economy in the People’s Republic from March to 2025.

Foreign company representatives may not have liked what Xi said behind closed doors earlier this week. “The most essential feature of building a new development pattern is to achieve a high level of self-sufficiency and self-improvement,” says Xi. ”

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La Jornada – NY Stock Exchange withdraws three Chinese telecommunications firms

NY. The New York Stock Exchange (NYSE) announced Wednesday that it will finally delist three Chinese telecommunications firms after receiving new slogans from the US government.

The New York trading platform had on Friday indicated its intention to remove from the panel China Mobile, China Telecom and China Unicom (Hong Kong), three companies controlled by the Chinese government that are also listed on the Hong Kong stock exchange.

The decision followed a November 12 presidential decree that prohibits transactions with companies accused of participating in the development of the Chinese military complex.

But the stock market retraced its steps on Monday after “consultations with the competent regulatory authorities”, which created some confusion.

Then, in a statement released Wednesday, the NYSE explains that it will follow a new directive from the Treasury office in charge of controlling foreign assets, received on Tuesday, according to which “US individuals cannot carry out certain transactions” with shares of China Telecom , China Mobile and China Unicom as of January 11.

The three groups are traded in the United States in the form of ADRs, American Depositary Shares, securities equivalent to shares with which foreign companies agree to trade on Wall Street.

The government of Donald Trump and Beijing have been waging a relentless battle on the economic and particularly technological levels for years, under the blow of punitive tariffs and blacklists of products.

On Tuesday night, Trump ordered a ban on all transactions with Alipay, WeChat Pay and other apps linked to Chinese companies, arguing that they could send user information to the Beijing government.

The executive order will take effect in 45 days, weeks after Trump is replaced in the White House by Democrat Joe Biden.


New York Stock Exchange turns 180 degrees

Dhe New York Stock Exchange has given up plans to remove three Chinese telecommunications companies from listing. The decision to allow China Telecom, China Mobile and China Unicom to continue trading on the stock exchange was made after consultations with the regulatory authorities, the New York Stock Exchange (NYSE) announced on Monday.

The exchange did not explain the decision in more detail. The government in Beijing had sharply criticized the plans to withdraw the listing of Chinese companies and threatened countermeasures.

The share prices of the three companies shot up after the announcement. In Hong Kong, China Unicom’s listing rose more than 8 percent on Tuesday morning, while China Mobile and China Telecom each rose more than 6 percent.

The NYSE announced at the end of last week that it would stop listing the shares of the three Chinese companies. She had justified this with an ordinance of the outgoing administration of President Donald Trump from November, by which investments in companies with connections to the Chinese military and security apparatus are prohibited. The ordinance is due to come into force on January 11th.

The Chinese leadership is using American capital to expand and modernize the military and security apparatus, according to the decree. Beijing “forced” private companies to support the military and intelligence agencies. These companies raised money on the international capital markets, including from American investors. Trump’s security adviser Robert O’Brien said in November that many American investors were unwittingly investing in such companies.

Under Trump, relations between the United States and China were marked by high tensions. After his electoral defeat on November 3rd, the Republican was replaced on January 20th by the Democrat Joe Biden in the White House. Although no fundamental turnaround is expected from this, it is expected in the political style.

Edison Lee, director of telecom research at Jefferies Financial Group in Hong Kong, described the decision as a “bizarre twist, to the detriment of American investors. It’s about a lot: Chinese companies have raised at least $ 144 billion in the United States over the past twenty years, the Bloomberg news agency wrote. American companies, on the other hand, do not want to lose access to the Chinese market.

The turnaround in the NYSE is quite unexpected, Jackson Wong, chief of wealth management at Amber Hill Capital in Hong Kong, told Bloomberg. Some funds would now have to buy back shares that they were obliged to sell. Some investors are now also pricing in a relaxation between China and America.

The departure of the Trump administration puts a big question mark behind everything it has done, said Orville Schell, director of the Asia Society’s Center for American-Chinese Relations.


US stock exchange NYSE does not block Chinese telecom companies after all

Trader an der New York Stock Exchange

The shares of the three initially excluded companies rose after the withdrawal of the NYSE on the Hong Kong stock exchange by up to 8.5 percent.

(Photo: Reuters)

New York The US stock exchange operator New York Stock Exchange (NYSE) has withdrawn its plans to exclude three state-owned Chinese telephone companies from stock trading. After further consultations with the relevant supervisory authorities, China Mobile, China Telecom and China Unicom are likely to stay, the NYSE announced on Monday. She did not give any further details.

The NYSE had only announced the lock on Thursday and referred to a US government decree from November. In November, the government banned investments in a total of 31 companies that they claim are controlled by the Chinese military.

After the decision in New York, the share prices of the three companies on the Hong Kong Stock Exchange rose by more than five percent each on Tuesday. Investors who sold the shares of the telecommunications company in the US on Monday were thus caught on the wrong foot.

A Jefferies Financial Group analyst called the turnaround “bizarre”. Jackson Wong, Director of Asset Management at Amber Hill Capital in Hong Kong, called the NYSE’s decision “quite unexpected”.

With the NYSE unclear as to why the NYSE changed course, investors speculated whether this was merely due to the stock market’s initial misinterpretation of the executive order or more general geopolitical implications.

US government officials accuse the Chinese Communist Party of exploiting US citizens’ access to US technology and investments to strengthen the country’s military. The Chinese government, on the other hand, accuses the US of using the national security argument as a pretext to discriminate against Chinese companies in competition.

More: Read here why the optimism remains unbroken on Wall Street.


US stock exchange NYSE bans three Chinese telecom companies

Securities of the Chinese telecom groups China Telecom, China Mobile and China Unicom Hong Kong can only be traded on the world’s largest stock exchange, the New York Stock Exchange (NYSE), for a few days. They will be blocked on the NYSE no later than next Monday, but maybe also from next Thursday. The reason is a decree from US President Donald Trump from November 2020.

That’s what the NYSE announced. On November 12, nine days after his election defeat, Trump banned his citizens from trading in the securities of companies that also work for the People’s Liberation Army of the People’s Republic of China. “These companies, although ostensibly privately owned and civil, directly support the military of the People’s Republic of China, its secret services and security forces, and support them in their development and modernization,” writes Trump in his decree (Executive Order 13959).

By issuing securities, these companies would finance the development and modernization of the Chinese military, taking advantage of US investors. In addition to the NYSE-listed companies China Mobile, China Telecom and China Unicom, more than two dozen other Chinese companies, such as Huawei, Panda Electronics, and the surveillance technology supplier Hikvision, are affected by the ban. However, they are not listed on US stock exchanges. The list of banned public companies is kept by the US Secretary of Defense and updated on a case-by-case basis.

The trade ban also applies to derivatives, including for subsidiaries, and also for indirect investments, for example through investment funds. Whether the NYSE delisting will take effect on Thursday or next Monday depends on whether or not the DTCC clearinghouse would still settle purchases made on Thursday and Friday. DTCC has not yet commented publicly on this.

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The stock exchange begins with the deletion of three Chinese companies

View of the New York Stock Exchange

Shares in Chinese companies are no longer allowed to be traded.

(Photo: AP)

New York The New York Stock Exchange has initiated the delisting of three Chinese companies with state participation. As of January 11, the shares of the telecommunications companies China Telecom, China Mobile and China Unicorn can no longer be traded on the New York Stock Exchange (NYSE), the exchange operator announced on Friday.

According to the New York Stock Exchange, the three companies have too close ties to the Chinese military. They are therefore “no longer suitable”. The Chinese companies initially did not comment. They are also listed on the Hong Kong stock exchange and generate only a very small part of their sales in the USA.

Nevertheless, this measure has a symbolic effect beyond Wall Street. In November, US President Donald Trump banned Americans from investing in Chinese companies that support the military there. To this end, he presented a list of companies whose stock ownership is prohibited for US persons or companies. This included, for example, aviation groups, tech companies and even companies from the telecommunications sector.

Trump justifies the ban by saying that these companies offer the Chinese military access to new technologies, which in turn would enable China to behave more aggressively. The People’s Republic is increasingly using the American chapter to advance the development and modernization of its military, secret service and other security apparatus, it said in the relevant decree.

Trump had taken strict action against Chinese companies several times in the past. For example, the government imposed a chip embargo on the successful technology company and smartphone provider Huawei. The risk that China could launch cyber attacks via Huawei technology in critical infrastructures such as the ultra-fast 5G network is too great.

More: US stock market: optimism on Wall Street remains unbroken


BP, ABN Amro, SAP: European stocks with price potential

Frankfurt The analysts of the British bank Barclays have calculated how much individual European stocks could benefit from an economic normalization. The result is a list headed by BP, ABN Amro, British Telecom, Total, Reckitt Benckiser, Fresenius, Imperial Brands, Axa, SAP and Cellnex Telecom.

The calculated price potential in this top group ranges from around 60 percent to a good 30 percent. At the end of the overall list with 39 stocks, there are still 14 percent in it.

Other well-known names on this list include Roche, Danone, Unilever and Nestlé. Deutsche Post, Delivery Hero, Covestro and RWE are also represented as German stocks. Here is an overview of the top ten.

BP: Zwhite “cash machines”

“In the past six months, BP has set out to make its business much more independent of CO2 emissions over the next ten years,” says the Barclays study. The group has two “cash machines” with the upstream and downstream areas, i.e. with the extraction of oil and gas as well as processing in refineries, for example. The stock is undervalued, Barclays is setting a price target of 400 pence.

On Monday, the ratio of the price to earnings per share (P / E) based on estimated earnings for 2021 according to the Reuters news service was 13; the lower this ratio, the cheaper the stock is.

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British Telecom: higher prices, lower costs

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Donald Trump bans investments in Chinese companies

Donald Trump

In his last weeks in office, the US president is once again dealing out against China.

(Photo: AFP)

New York At the end of his term in office, US President Donald Trump wipes out one more thing from China: by government decree, he forbids Americans to invest in Chinese companies that support the Chinese military.

The government has drawn up a list of 31 companies whose stock ownership is banned for US persons or companies. You may not hold the shares directly or through mutual funds.

Companies affected also include large airlines, shipyards, construction companies, and tech firms like Inspur. With China Mobile Communications and China Telecommunications Corp, there are also two names whose shares are traded on the US market.

Trump justifies the ban by saying that these companies offer the Chinese military access to new technologies and that this allows China to behave more aggressively. The People’s Republic was increasingly using the American chapter to advance the development and modernization of its military, intelligence and other security apparatus, the decree said. This makes it possible for the Chinese Communist Party to continue to threaten US territory and US armed forces abroad directly.

As of January 11, Americans will no longer be able to purchase shares in these companies. They have to sell off possible investments by November 2021. According to media reports, the Trump administration had been working on the decree for months.

Trump’s government had already taken action against Chinese companies that were classified as a threat to US security. The crackdown on network equipment and smartphone provider Huawei was particularly tough. Trump’s government warned of the risk that Huawei could use its position in the cellular networks for espionage and sabotage on behalf of Beijing – the company rejects the allegations. The sanctions also reduced sales of Huawei smartphones in the West because they have to be sold without pre-installed Google services.

More: In trade dispute with the USA, China is pushing plans for a company penalty list.