BlackRock hangs up on China Telecom after US ban 

The world's biggest asset manager has sold its $200 million stake in the state-owned mobile provider – as US investors rush to sell shares in companies on the Trump administration’s controversial blacklist of firms it claims have links with China's military 

by Alun John
BlackRock hangs up on China Telecom after US ban 
BlackRock's stake in China Telecom has been reduced from 6.1% to 0.2%.  Photo: Reuters

BlackRock has sold almost all its stake in China Telecom, a company subject to a new ban on US investment.

The move comes as US investors scramble to exit stocks subject to the sanctions, which ban Americans from owning companies deemed to have links with China's military.

The world's biggest asset manager sold 818 million shares in China Telecom, one of 44 sanctioned companies, at an average of HK$1.92 each on Tuesday, a Hong Kong exchange filing showed, 12% below Tuesday's closing price.

Read more: China trade surplus with US widens 7.1% to $317 bn in 2020 

The filing gave no reason for the HK$1.6 billion ($206 million) sale, which reduced BlackRock's stake in China Telecom from 6.1% to 0.2%, and BlackRock had no immediate comment.

BlackRock said on Monday its index funds had adjusted holdings to reflect moves by MSCI Inc, FTSE Russell and S&P Dow Jones Indicies to cut China Telecom and other firms affected by the sanctions from their benchmarks.

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The Trump administration expanded the investment ban to an extra nine firms on Wednesday and investors expect more liquidations to come from big US funds before the rules take effect in November.   

China's foreign ministry has said the sanctions amount to wanton oppression of Chinese companies. China Telecom shares rose 1.4% to close at $2.34 on Friday, as some non-US investors sought to pick up the stock cheaply.

  • Reuters

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