The ban war
If it was Huawei last week, it’s Hikvision this week.
Chinese indexes were down on May 22 on the possibility that the Trump administration may bar Hangzhou HikVision, a $35 billion video surveillance company listed on the Shenzhen Stock Exchange, from purchasing US equipment.
While some of the restrictions on Huawei were lifted this week to avoid disruptions to the Chinese giant’s customers, the full details on the restrictions on HikVision weren’t available.
Hangzhou HikVision fell 5.54% on the Shenzhen Stock Exchange on May 22.
Recently, the Chinese Ambassador to the United States, Cui Tiankai, told Fox News that it’s the United States that “changes its mind so often” on the trade deal.
He also extended an olive branch to the United States by saying that China remains ready for the discussion to continue and the door is still not closed.
Both the main Chinese stock indexes, the Shanghai Composite and the Shenzhen Component, dropped on May 22 after rising on May 21. The Shanghai Composite Index retreated 0.49% from the previous day’s close. The Shenzhen Component shed 46 points, or 0.51%, to end up at 9,041.22.
The iShares MSCI China ETF (MCHI) recovered 1.52% on May 21 after two consecutive days of heavy losses. Meanwhile, the iShares China Large-Cap ETF (FXI) rose 1.09% on May 21. The technology-focused KraneShares CSI China Internet ETF (KWEB) gained 2.33% yesterday. The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) gained 1.98% on May 21 but was down 0.11% in May 22 premarket trading at 4:56 AM EDT.