Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION

(981)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

U.S. considering adding Alibaba, Tencent to China investment ban -sources

01/06/2021 | 02:47pm EDT

* Plans not yet finalised, other firms may be added -sources

* Trump has unleashed a raft of measures against Chinese firms

* Some investors doubt the two will face long-term restrictions (Adds Chinese foreign ministry comment in paragraph 15)

WASHINGTON/SHANGHAI, Jan 7 (Reuters) - The Trump administration is considering adding tech giants Alibaba and Tencent to a blacklist of firms allegedly owned or controlled by the Chinese military, two people familiar with the matter said on Wednesday.

Targeting Asia's two most valuable companies would be U.S. President Donald Trump's most dramatic step yet in a recent raft of measures unleashed against Chinese companies as he seeks to cement his hardline policy against Beijing during his final days in office.

Defense Department officials, who oversee the blacklist designations, have not yet finalized plans and are also discussing adding other Chinese firms to the list, the sources said, speaking on condition of anonymity because the deliberations are private.

Both companies declined to comment. The discussions were first reported by the Wall Street Journal.

Shares in Alibaba, China's biggest e-commerce firm, finished down 3.9% on the Hong Kong Stock Exchange while Tencent, a gaming and social media behemoth, lost 4.7%. Alibaba's U.S.-listed shares closed down just over 5% on the news on Wednesday.

Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined $1.3 trillion, widely held by U.S. investors and the likely reputational and financial hit to U.S. stock markets.

"It's a very bad policy and there's enough money in Asia, lots and getting bigger, that one shouldn't force these companies out of America," said Thomas Caldwell, chairman of Caldwell Investment Management in Toronto and an investor in the New York Stock Exchange. "Money and markets should be neutral."

Trump escalated measures against Chinese firms in November with an executive order that bans U.S. investors from buying shares of Chinese firms.

On Tuesday, he ordered a ban on transactions with eight Chinese software applications, including Ant Group's Alipay mobile payment app and Tencent's QQ Wallet and WeChat Pay.

The November executive order sought to give teeth to a 1999 law that tasked the Defense Department with drafting a list of Chinese companies deemed to be owned or controlled by the Chinese military.

The Pentagon has so far blacklisted 35 firms, including China's top chipmaker SMIC and oil giant CNOOC.

While release of the November directive prompted index providers like MSCI to begin deleting blacklisted companies from their indexes, confusion about the scope of the rules has prompted some dramatic flip-flops by the New York Stock Exchange in recent days.

The NYSE originally on Dec. 31 announced plans to delist China Mobile Ltd, China Telecom Corp Ltd and China Unicom Hong Kong Ltd. On Monday, it did a U-turn after consulting with regulators in connection with the U.S. Treasury's Office of Foreign Assets Control and decided to keep them listed. On Wednesday it said it will return to the original plan.

S&P Dow Jones Indices have followed the NYSE and said late on Wednesday it will remove the American Depositary Receipts (ADRs) of the three telecom companies.

In response to news of the potential Alibaba and Tencent blacklisting and the NYSE's decision to delist the telecom firms, Chinese foreign ministry spokeswoman Hua Chunying said on Thursday that China would take action to protect the legitimate rights and interests of its companies.

CROSSHAIRS

The Trump administration has had both Tencent and Alibaba's financial technology affiliate Ant Group in its crosshairs for some time.

In August, Trump signed an executive order to ban some U.S. transactions with Tencent's WeChat. But the restrictions were blocked by courts mainly on freedom of speech grounds.

Reuters reported in November that the U.S. State Department had submitted a proposal to add Ant Group to another trade blacklist to deter U.S. investors from taking part in its now-aborted initial public offering. But the Commerce Department, which oversees the blacklist, shelved the proposal after Alibaba President Michael Evans urged Commerce Secretary Wilbur Ross to reject the proposal.

Ant Group's $37 billion IPO was halted after co-founder Jack Ma publicly criticized China's regulatory system in October, setting off a concerted regulatory crackdown in the country on Alibaba and Ant.

Alibaba's market value has shrunk by more than a quarter since November after the Ant Group IPO failed. But valued at more than $600 billion, it is still among the biggest 10 companies globally.

(Reporting by Andrea Shalal and Alexandra Alper in Washington, Ross Kerber in Boston, John McCrank in New York, Josh Horwitz and Sam Shen in Shanghai, Pei Li in Hong Kong, Gabriel Crossley in Beijing, Munsif Vengattil, Kanishka Singh and Bhargav Acharya in Bengaluru; Additional writing by Sayantani Ghosh; Editing by Edwina Gibbs)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -0.46% 151.19 Delayed Quote.-35.04%
CHINA MOBILE LIMITED 1.27% 47.75 End-of-day quote.8.03%
CHINA TELECOM CORPORATION LIMITED 0.77% 2.63 End-of-day quote.22.33%
CHINA UNICOM (HONG KONG) LIMITED 0.50% 3.99 End-of-day quote.-10.34%
CNOOC LIMITED 2.95% 8.03 End-of-day quote.11.84%
GOLDEN EAGLE RETAIL GROUP LIMITED 0.00% 6.82 End-of-day quote.-3.13%
LONDON BRENT OIL 0.08% 77.39 Delayed Quote.44.45%
SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION -0.91% 21.85 End-of-day quote.-1.13%
TENCENT HOLDINGS LIMITED 2.93% 463.2 End-of-day quote.-17.87%
WTI -0.05% 73.321 Delayed Quote.46.78%
All news about SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
09/23Global Semiconductor Shortage to Ease Through Q4, IDC Says
MT
09/18Dream ink announced that it has received CNY 100 million in funding from Semiconductor ..
CI
09/12China Slaps Fines on Three Auto-Chip Firms Over Price Gouging
MT
09/08Qualcomm CEO open to working with foundry partners in Europe
RE
09/05SMIC Chairman Steps Down Due to 'Health Reasons'
MT
09/03Tech Up On Rotation Back To Growth Sectors -- Tech Roundup
DJ
09/03Semiconductor Manufacturing International Corporation Announces Board Changes
CI
09/03China's SMIC to invest $8.87 billion for new chip plant in Shanghai
RE
09/03NORTH AMERICAN MORNING BRIEFING : Stock Futures Edge Up Ahead of Jobs Report
DJ
09/03SEMICONDUCTOR MANUFACTURING INTERNAT : SMIC, Shanghai Government Setting Up Nearly $9 Bill..
MT
More news
Analyst Recommendations on SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
More recommendations
Financials (USD)
Sales 2021 5 168 M - -
Net income 2021 1 281 M - -
Net cash 2021 2 332 M - -
P/E ratio 2021 17,4x
Yield 2021 -
Capitalization 22 184 M 22 184 M -
EV / Sales 2021 3,84x
EV / Sales 2022 3,46x
Nbr of Employees 17 354
Free-Float 72,2%
Chart SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
Duration : Period :
Semiconductor Manufacturing International Corporation Technical Analysis Chart | 981 | KYG8020E1199 | MarketScreener
Technical analysis trends SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Last Close Price 2,81 $
Average target price 3,86 $
Spread / Average Target 37,6%
EPS Revisions
Managers and Directors
Hai Jun Zhao Co-Chief Executive Officer & Executive Director
Meng Song Liang Co-Chief Executive Officer & Executive Director
Yong Gang Gao Chairman, CFO, Secretary & Executive VP
Mei Sheng Zhou Executive VP-Technology Research & Development
Xin Zhang Senior Vice President-Operations & Engineering
Sector and Competitors