BlackRock sells $200 mln China Telecom stake after U.S. ban (updated)

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15/01/2021 11:32

* BlackRock sale at HK$1.92/share is below market price
    * BlackRock stake reduced from 6.1% to 0.2%
    * Comes as U.S. investors quit stocks subject to sanctions 

 (Adds detail)
    HONG KONG, Jan 15 (Reuters) - BlackRock  BLK.N  has sold
almost all its stake in China Telecom  0729.HK , a company
subject to a new ban on U.S. investment, a stock market filing
on Friday showed.
    The move comes as U.S. investors scramble to exit stocks
subject to the sanctions, which ban Americans from owning
companies deemed to have links with China's military.
    The world's biggest asset manager sold 818 million shares in
China Telecom, one of 44 sanctioned companies, at an average of
HK$1.92 each on Tuesday, a Hong Kong exchange filing showed, 12%
below Tuesday's closing price.
    The filing gave no reason for the HK$1.6 billion ($206
million) sale, which reduced BlackRock's stake in China Telecom
from 6.1% to 0.2%, and BlackRock had no immediate comment.
    BlackRock said on Monday its index funds had adjusted
holdings to reflect moves by MSCI Inc  MSCI.N , FTSE Russell and
S&P Dow Jones Indicies to cut China Telecom and other firms
affected by the sanctions from their benchmarks.  urn:newsml:reuters.com:*:nL1N2JM25Q
    The Trump administration expanded the investment ban, to an
extra nine firms on Wednesday, and investors expect more
liquidations to come from big U.S. funds before the rules take
effect in November 2021.  urn:newsml:reuters.com:*:nL1N2JP1Z0    
    China's foreign ministry has said the sanctions amount to
wanton oppression of Chinese companies. China Telecom shares
rose 1.4% to close at $2.34 on Friday, as some non-U.S.
investors sought to pick up the stock cheaply.  urn:newsml:reuters.com:*:nL4N2JO27J
($1 = 7.7542 Hong Kong dollars)   

 (Reporting by Twinnie Siu and Alun John; Writing by Tom
Westbrook in Singapore; Editing by Jan Harvey and Alexander
Smith)
 ((tom.westbrook@tr.com; +65 6318 4876;))