Market Noise or a Lead to sell off for Chinese ADR?
The U.S. Treasury Department is drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with "industrially significant technology," a government official briefed on the matter said on Sunday.
This would reduce U.S. company's incentive towards Chinese investment (ADRs), especially firms that have lower than $50B market cap such as SOGO and IQ. However, in the long run, it shouldn't be a big impact as there are many other countries, especially the European one, that 's looking to invest in China.
It would be interesting on how China would respond.
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