Chinese bargain hunters pile into stocks blacklisted by Trump

Chinese bargain hunters pile into stocks blacklisted by Trump

As U.S. investors rush to sell shares in the sanctioned companies and their subsidiaries before the executive order takes effect on Jan. 11, Chinese investors are swooping in.Since the order was announced, holdings by mainland Chinese in the Hong Kong-listed shares of China Railway Construction Corp (CRCC) and CNOOC Ltd via the China-Hong Kong Connect roughly tripled, according to bourse operator Hong Kong Exchanges and Clearing Ltd.Other blacklisted stocks, including railway equipment maker CRRC Corp, China Communications Construction Co 1800.HK and semiconductor giant SMIC also witnessed heavy money inflows.Zhu Haifeng, a veteran Chinese retail investor, said he bargain hunted in CNOOC and CRRC, which both had lost as much as 27% since the Trump order."They are globally-competitive companies, and are China's 'name cards'," said Zhu, who sees limited impact on the companies' fundamentals from the U.S. sanctions.Wan Chengshui, portfolio manager at Hangzhou-based Golden Eagle Fund Management Co, said he plans to increase his holdings in Tencent, if prices fall further."Trump politicized everything in the name of national security. When Biden takes office, I think things will take a turn for the better," said Wan, predicting Trump's executive order will be nullified, and sanctions against Tencent and Alibaba won't materialize.Wan is