Xiaomi shares slip after the US investment ban

January 15, 2021 03:41 PM AEDT | By Team Kalkine Media

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Xiaomi shares slip after the US investment ban

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Summary

Xiaomi Corporation is now added to the list of companies banned for US investments.

The US Department of Defence on Thursday released a new list of nine companies barred from US investments.

Cranking up pressure on Beijing, the United States’ Department of Defence has blacklisted nine Chinese companies, including Xiaomi Corporation. The US investors would be barred from investing in the alleged “Communist Chinese military companies” that feature on the blacklist.

Affected by the ban, Hong Kong-listed shares of Xiaomi fell over 10% on Friday.

Source: US Department of Defence, 14 January 2020

After an executive order signed by President Trump in November 2020, the US investors would be forced to sell their holdings in the blacklisted companies by November this year.

The outgoing President has increased the scrutiny of Chinese companies alleged to have links with the People’s Liberation Army.

As Joe Biden takes office next week, the new administration's foreign policy stance would be evident in the coming months. But the Trump administration is trying to make its foreign policy impact last longer.

This month, the US moved to delist three large Chinese telecommunications companies from the New York Stock Exchange (NYSE).

Source: Megapixl^TM

Xiaomi features among the largest smartphone manufacturers, with a strong presence in Asian emerging markets. The US's latest decision could be a blow to the American investors seeking shelter in EM tech stocks.

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