Professor Jesse Fried raised some very good points in his column “Trump’s attempt to delist China will only backfire” (Markets Insight, January 14). Almost all the major Chinese state-owned enterprises have their primary listings on the stock exchanges in Hong Kong, Shanghai or Shenzhen.
The issue of American depositary receipts listed on stock exchanges in the US or global depositary receipts listed in London allows foreign investors exposure to the second-largest economy of the world.
Making it more difficult for US investors will backfire causing poorer portfolio performance compared with other international managers who are not subject to the same restrictions.
Take the case of China Mobile. The forced sale by US investors only benefits Chinese investors who have acquired a historically huge $4.2bn worth of this stock since the beginning of 2021.
Most of the purchasing was done on January 8 at a mid-price of around HK$41.
The price yesterday was HK$49.20. Thank you Mr Trump.
Tony SK Li
Mid-Levels, Hong Kong
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