Xiaomi stocks plunge after blacklisting by Trump
The Chinese smartphone manufacturer said it would take appropriate actions to protect its interests
Stocks impacted: Xiaomi Corp (1810)
Xiaomi Corporation shares plunged after US President Donald Trump’s administration added it to a blacklist of Chinese companies with ties to the military. The company was one of nine added to the Defense Department’s blacklist. A new US investment ban forces American investors to divest their holdings of the blacklisted firms by November 11, 2021. Trump’s initial executive order was subsequently expanded to force investors to divest or sell out, of affected holdings. In turn, the Chinese smartphone manufacturer said that it is not owned or controlled by the Chinese military, adding that it would take appropriate actions to protect its interests. At the same time, the US authorities abandoned plans to add Alibaba, Baidu, and Tencent to the military blacklist. Following this move, Xiaomi stocks dropped over 10% during Asian trading.
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