Trading in 12 off-exchange Chinese securities to be restricted
07/01/2021 20:06
By John McCrank
NEW YORK, Jan 7 (Reuters) - Major off-exchange trading
platform operator OTC Market OTCM.PK said on Thursday it would
prohibit trading in 12 Chinese securities as a result of rules
by the Trump administration, further restricting U.S. investor
access to the country.
The move comes as Washington ramps up its hardline approach
toward Beijing in the final days of the Trump administration,
which has so far blacklisted 35 Chinese companies allegedly
owned or controlled by the Chinese military and is considering
adding more, including Alibaba 9988.HK and Tencent 0700.HK ,
two of Asia's biggest companies. urn:newsml:reuters.com:*:nL4N2J116X urn:newsml:reuters.com:*:nL4N2JH3JV
OTC Markets lists around 11,000 over-the-counter securities,
many of which would not meet the standards to list on a national
stock exchange. It said quoting in nine symbols, including those
of China Railway Construction Corp 601186.SS , Nanjing Panda
Electronics Co 600775.SS , and Semiconductor Manufacturing
International 0981.HK , would no longer by available on its
platform as of Thursday. (Complete list here https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.otcmarkets.com%2Ffiles%2FOTC_Link_CCMC_List_EO_13959.xlsx&data=04%7C01%7Cjohn.mccrank%40thomsonreuters.com%7C2a132d1fc1ab40ebb0f508d8b32b93b9%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C637456347882922909%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=1Ui7yx64bbUj7%2FlMoiSy95M99HK1e3u1qKBCeoXZb8s%3D&reserved=0)
Trading in three more securities will be restricted on the
platform as of Jan. 11, and OTC Markets said it would continue
to evaluate whether it needs to remove others based on guidance
from the Treasury's Office of Foreign Assets Control.
The investment bans, which are the result of an executive
order issued by President Donald Trump in November, have sowed
confusion among investors as to which companies were affected.
The New York Stock Exchange on Wednesday said it would
delist three companies as a result of the order, reversing a
decision made days earlier that the companies could remain
listed on the Big Board, which was a flip-flop from last
Thursday when the NYSE announce the securities would be banned.
urn:newsml:reuters.com:*:nL4N2JH311
Index makers, including S&P Dow Jones Indices, FTSE Russell
and MSCI Inc MSCI.N , have also cut certain Chinese companies
from their benchmarks, based on the executive order.
(Reporting by John McCrank; editing by Megan Davies and Nick
Zieminski)
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