Hong Kong Investors: “Trump Ordered to Sell Chinese Stocks “
As the US-China trade dispute is getting more and more fierce, David Webb, a well-known activist in Hong Kong, said he believes that the next step in the trade war may be that the Trump administration ordered US funds to sell Chinese stocks.
“Bloomberg” reported that Weber warned on the 17th that if the US-China trade war is escalated again, the weapons that the United States can use are not only tariffs, Trump may use the “Overseas Asset Control Office” under the US Treasury (OFAC). ) Ordering all Americans to sell Chinese stocks, similar to last year’s sanctions against Rusal.
Webber said: “When the effectiveness of tariff weapons is exhausted, the United States may turn to the president through the Ministry of Finance and other assets owned by the Office of Overseas Asset Control. Capital warfare may start, and the situation may become very bad at that time.”
Weber said investors should avoid holding shares in Chinese state-owned companies and said he is focused on stocks with “strong Hong Kong elements” or mainly private sector.
In January this year, the Trump administration cancelled the sanctions against the Russian aluminum company. During the sanctions period, the aluminum giant’s market capitalization fell by more than half from $9.2 billion.