Dec 15 (Reuters) - Robinhood Markets on Jan. 4 will no longer offer on its app Chinese securities affected by a U.S. order, including those of China Mobile Ltd, China Telecom Corp Ltd and Semiconductor Manufacturing International Corp, the fintech startup told customers.
The securities will be set to position closing only, meaning a customer can sell but cannot buy any additional shares, a Robinhood spokeswoman said in an email on Tuesday.
If customers take no action, their shares will remain at Robinhood until Nov. 11, 2021, after which it will sell them and credit proceeds to their account, the spokeswoman added.
A White House executive order last month barred U.S. investors from buying securities of restricted firms, starting in November 2021. The administration of U.S. President Donald Trump alleged the companies were linked to China’s military.
China condemned the move, saying the effort ran counter to principles of market competition. “The U.S. should stop abusing national power and national security concepts to suppress foreign companies,” Foreign Ministry spokeswoman Hua Chunying said on Dec. 4.
S&P Dow Jones Indices said on Dec. 10 it would remove mainland-listed A-shares, Hong Kong-listed H-shares and American Depositary Receipts (ADRs) of 10 companies from all equity indexes prior to the market open on Dec. 21.
Nasdaq said on Friday it would remove shares of four Chinese construction and manufacturing companies from its indexes, while MSCI Inc said on Tuesday it will delete the securities of 10 Chinese companies from some indexes after the U.S. imposed restrictions on their ownership. (Reporting by Shubham Kalia and Kanishka Singh in Bengaluru; Editing by Richard Chang)