Home Forums Members Forum CHL – have to sell monday

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  • AvatarRachel Johnson
    Participant
    Post count: 2

    I was hoping to hear you address this issue in your recent podcast, but I did not hear any.
    This is the latest correspondence I’ve received from Ameritrade re: CHL

    We recently wrote to let you know that you currently hold one or more of the restricted securities impacted by the executive order signed by President Trump on November 12, 2020. We’ve received notification from our liquidity providers that they may not accept transactions in shares of the associated securities starting on January 5, 2021, which is earlier than the January 11, 2021 federal deadline. Therefore, you will have until market close on Monday, January 4, 2021 to liquidate these securities.

    The executive order prohibits the purchase or holding of any securities that invest in mainland Chinese companies with ties to the military of the People’s Republic of China (CCMCs*). A full list of restricted companies and/or funds can be found here.

    Action Required in Your Account

    If you wish to liquidate any of the associated securities you should do so before market close on Monday, January 4, 2021.

    We may be unable to accept any liquidation orders for any security, or any derivative of, that has been identified by the U.S. government as having investment exposure to CCMCs after January 4, 2021. Barring any future guidance from the U.S. government, you may continue to hold these securities until market close on November 11, 2021, but you may not be able to liquidate them at TD Ameritrade.

    You also have the option to transfer the securities to another broker-dealer. Please submit any outgoing transfers requests to us by August 2, 2021**. (These transactions may incur fees or commissions, depending on the asset type.)

    So I will be selling it at market on monday (for a loss, unfortunately), unless there’s something I’m missing. Advice?
    Thanks!

    AvatarAaron
    Participant
    Post count: 23

    Hoping Sean will chime in with more direct advice but one option would be to transfer these holdings to another broker. The CHL that we hold is the listing specifically on the NYSE. However, the company is also listed for example on the Hong Kong stock exchange. It’s probably going to depend on how much of a loss you’re taking by just liquidating it as there may be transfer fees etc involved to complicate the process. Obviously, Sean will have better advice but there may be options beyond simply liquidating.

    AvatarAaron
    Participant
    Post count: 23

    Oh, hey Rachel there’s a conversation going on the posting titled “CHL Averaging down.” Looks like I was mostly right but if check out the conversation on that thread…

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    Good info, Rachel. Thanks.

    Aaron, yep, yu’re right. I addressed it on that thread. https://logicalinvestor.net/forums/topic/chl-_-averaging-down-point/page/3/#post-39636

    Americans can no longer hold it in American accounts. CHL is traded in Hong Kong. Not sure it’s worth opening and transferring there, but that would be up to you. But here in the U.S., because of the presidential decree, you’d have to sell it if you didn’t transfer it to Hong Kong. d

    So, a forced sell (by Monday with some brokers) would incur a loss. I guess one would just have to remember that we made almost 17% off of it last time, which would lessen that loss. Not much one can do when the president makes it illegal to hold them and then makes the date so near-term.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    And the reason why I didn’t address it on the latest video is because the last word I’d seen on it was November of 2021 was when we had to sell it. That got drastically moved up recently, without my knowledge.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    Aaron, thanks for helping out while I was away, and for just being a help in general.

    matt andersonmatt anderson
    Participant
    Post count: 15

    I wonder if that applies to options on CHL? I haven’t received a notification about that those need to be exited.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    That’s a good question that only your broker could properly answer.

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    By the way, institutions had MILLIONS of shares that they’re having to sell and take losses on. Whew! https://money.cnn.com/quote/shareholders/shareholders.html?symb=CHL&subView=institutional

    BekkaBekka
    Participant
    Post count: 311

    Would it be best to sell it at market or as a limit order?

    AvatarAaron
    Participant
    Post count: 23

    No problem… uh, btw. Lol. When I signed my brother up for his Christmas gift I was logged into the moderator account. Somehow it messed up the permissions for that account and I can’t access anything anymore. Was gonna text ya but well, wasn’t pressing since I still have this…

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    Market order, because it’s liquid enough.

    Aaron: I think I’ve got you updated back up to moderator. Check it out and let me know. Thanks. Sorry, for whatever reason, that bumped you off of that.

    AvatarBauka
    Participant
    Post count: 26

    So if we are Canadian I assume we can keep it in the portfolio ? Brokerage is Canadian as well. Will it still be listed on the NYSE?

    Sean HymanSean Hyman
    Keymaster
    Post count: 5577

    You’d have to ask your broker to make for sure. It won’t be traded on the NYSE. And I’m not sure if it trades on the Toronto exchange. I just know it trades in Hong Kong.

    AvatarBauka
    Participant
    Post count: 26

    No it doesn’t trade on the TSE. So then I have to sell? No messages from the brokerage. I”ll leave a message but won’t be picked up for a few days.

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