Fund manager State Street Global Advisors said in a statement that its Hang Seng ( traHK will no longer invest in companies known to be affiliated with or supporting the Chinese military that were sanctioned under President Donald Trump’s November executive order. )
Meanwhile, Black rock ( said in a note to clients that its iShares ETFs have also been adjusted in line with the response of the underlying indices to the sanctions. )
Biparty pressure to be tough on China set to continue in Biden era
Trump’s term is coming to an end, but President-elect Joe Biden is unlikely to reverse the government’s stance on China when he takes office later this month.
“There is bipartisan pressure to stand firm on China,” Cowen analyst Jaret Seiberg said, noting that Biden will have “much higher priorities to move forward, such as securing another stimulus. [package]. »
This could mean that US financial markets, as well as accessing the US consumer base, could continue to be a difficult task for Chinese companies.
In fact, Biden could be even tougher on China, Seiberg said.
“This could include asking Congress to shorten the three-year period that Chinese companies must open their audits to inspections before US stock exchanges must write them off. ”