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US banks are dropping products related to Chinese stocks after the NYSE ban



The fund’s manager, State Street Global Advisors, said in a statement that it was Hang Seng (HSI) Index tracker TraHK will no longer invest in businesses believed to be affiliated with or supporting the Chinese military that have been sanctioned under President Donald Trump’s executive order from November.
Meanwhile, Black stone (BLACK) said in a note to customers that its iShares ETFs have also been adjusted in line with major indices in response to the sanctions.
Trump also signed an executive order last week banning transactions with eight Chinese payment applications, including Ali Baba (GRANDMA) associated Alipay of Ant Group. On top of that, the White House is considering banning Americans from investing in Alibaba and Tencent (TCEHY), although it is not clear how likely this ban is to be enforced.

Bipartisan pressure to crack down on China is expected to continue during the Biden era

Trump’s term is coming to an end, but President-elect Joe Biden is not expected to change the government’s position on China when he takes office later this month.

“There is bipartisan pressure to stay firm on China,” said Jarrett Seiberg, an analyst at Cowen, noting that Biden will have “much higher priorities for progress, such as providing another incentive.” [package]. “

This could mean that US capital markets, as well as access to the US consumer base, can continue to be a difficult task for Chinese companies.

In fact, Biden could become even tougher on China, Seiberg said.

“This may include asking Congress to shorten the three-year period in which Chinese companies must open their audits for inspections before U.S. stock exchanges delist them.”


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