At the beginning of the year, Chinese tech stocks accounted for about a fifth of my portfolio. However, I recently sold three of those stocks and reduced my total exposure to Chinese equities to less than 10%.
1. China Mobile
I once considered China Mobile, the largest telecom company in China, to be a rock-solid dividend stock with a low valuation. However, escalating tensions between the U.S. and China under the Trump administration made China Mobile and its two peers, China Telecom and China Unicom, toxic investments.
In November, President Donald Trump issued an executive order that barred U.S. investors from buying shares of Chinese companies with alleged ties to the Chinese military. China Mobile, China Telecom, and China Unicom were included on that list. The NYSE was forced to delist all three telcos in early January. I sold all my shares in China Mobile on Jan. 7, the final trading day before the stock was delisted.
My broker said if I didn’t sell the stock, the position would be locked up for an indefinite amount of time. As a U.S. citizen, a conversion of the ADRs to the Hong Kong shares (as recommended by China Mobile)