BlackRock has sold almost all of its stake in China Telecom, a company that is subject to new US investment restrictions. The move comes as U.S. investors seek to get out of restricted stocks, which forbids Americans to own companies deemed to have ties to the Chinese military.
As such, the world's largest asset manager has sold 818 million shares in China Telecom, one of 44 companies, averaging HK $ 1.92 each. According to the Hong Kong exchange report, it was 12% below the closing price last Tuesday.
However, the filing was not an issue for the sale of $ 206 million shares, which reduced BlackRock's stake in China Telecom from 6.1% to 0.2%. However, BlackRock did not submit any response to the issue.
For all you know, the Trump administration has extended the investment ban, to 9 additional companies last Wednesday, and investors expect more liquidation to come from U.S. funds.
Following that, China's foreign ministry said the sanctions were a form of oppression against Chinese companies. Meanwhile, China Telecom shares were up 1.4% to close at $ 2.34 today, as some non-US investors sought to buy shares at lower prices.
