The U.S. Department of Defense announced Thursday (14) that it has blacklisted nine companies, including Xiaomi (01810) and aircraft manufacturer Commercial Aircraft of China (COMAC), for alleged ties to the Chinese Communist Party’s military.
In addition to Xiaomi and COMAC, the other seven blacklisted Chinese companies include: SMIC Semiconductor Equipment (688012.SH), Basket Technology, Beijing Zhongguancun Development Investment Center, CML Technology, Gao Yun Semiconductor, Da Xinhua Airlines, and China Aviation Group.
Xiaomi ADR price had fallen sharply by more than 10%, equivalent to close at HK$30.63, 6.2% lower than the Hong Kong closing price.
U.S. President Donald Trump signed an executive order on Wednesday (13), stating that U.S. investors can no longer hold shares in the blacklist since November 11 this year, in other words, investors have to sell all the shares in the list before the “dead line”, and foreign media quoted officials as saying that this move is to prevent U.S. investors from contributing money to help the Chinese Communist Party’s military modernization.
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