US is considering investment restrictions over China

Weekly Report - 02/10/2019

Investment Restrictions


The US is considering the possibility to apply limitations of investing in Chinese corporations. If the US apply these limitations then it could not only hurt China but it may additionally harm the United States, according to analysts interviewed by CNBC. The comments supported by reports that the U.S administration is examining the possibility of investment barriers against China. One of those restriction covers the delisting of some Chinese stocks in the United States and restricting government pension funds’ stakes in the Chinese market. The professor of finance at Tsinghua University in Beijing Ning Zhu said to CNBC that Limitations like delisting Chinese stocks in New York can be translated that the “U.S. is not as open as before. It’s going to have a fairly far-reaching impact”.

The Week that was

Last Wednesday the disappointments and failures concerning the Brexit matter turned into anger in the UK House of Commons as lawmakers start to question the government over its unwillingness to apologize for the lawless acts. The surge of anger also punished Prime Minister Boris Johnson for his language regarding a murdered MP. The House of Commons came back to its regular activities last Tuesday after the UK Supreme Court decision. The decision stated that the Conservative government had committed unlawful actions to suspend the parliament.


Main Focus This Week

High-level discussions are quickly approaching and the market is now more sensitive towards any development from the US and China. The two giants will continue to push the major currency pairs. Any sign of trade discussions to stop and we will see risk appetite decline. While the Greenback got supported from geopolitical uncertainty in the US, any warning that the trade discussions being canceled could drive the Dollar to the downside. Now Impeachment report implied that the President of the United States Donald Trump tried to influence the 2020 presidential election run. Mike Pompeo the Secretary of State was summoned last week and we are anticipating a lot of movement this week.


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