The threat to the Trump administration’s governance has not been removed. In November last year issued an executive order prohibiting Americans from investing in companies that the U.S. Department of Defense believes are linked to the Chinese Communist Party military, and many of the Chinese companies on the blacklist have been removed from various indices, and their shares have been delisted from the New York Stock Exchange, and the market is concerned about how much impact the incident has on the fixed income market.
Foreign news quoted JP Morgan Chase report to clients pointed out that the United States to limit investors to hold a number of Chinese corporate securities move, may affect up to about 60 billion U.S. dollars (about 468 billion Hong Kong dollars) of bonds, forced to sell will lead to a large amount of capital outflow.
The bank’s data show that an estimated $55 billion to $60 billion of bonds belong to the implicated category, of which U.S. investors hold the most bonds of the China National Chemical Corporation, expected to be affected by the executive order, Sinochem has been forced to sell $1 billion of bonds, or another $1.3 billion of funds flowing away again. As for CNOOC (00883) bond size of $19.5 billion, registered funds in the United States hold more than $3.2 billion, if the scope of the impact is extended to all asset management companies with business in the United States, the impact is expected to reach $3.5 billion.
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