Expect 'Limited Reaction From China' To Biden's Quantum, Semiconductor Investment Order, Analyst Says
Portfolio Pulse from AJ Fabino
President Joe Biden has signed an executive order restricting certain U.S. investments in China’s key technology sectors, including semiconductors, microelectronics, quantum technology, and specific AI systems. The order aims to prevent U.S. capital and expertise from enhancing China’s military modernization. Analysts at Raymond James suggest that the immediate backlash from China will be limited. The order could potentially tighten if U.S.-China tensions intensify. ETFs with exposure to U.S. and China tech sectors that investors can watch include iShares Semiconductor ETF (SOXX), VanEck Semiconductor ETF (SMH), Global X Robotics and Artificial Intelligence ETF (BOTZ), KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI), and ARK Autonomous Technology & Robotics ETF (ARKQ).
August 10, 2023 | 6:04 pm
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NEUTRAL IMPACT
The ARK Autonomous Technology & Robotics ETF (ARKQ) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the ARKQ ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The Global X Robotics and Artificial Intelligence ETF (BOTZ) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the BOTZ ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The iShares China Large-Cap ETF (FXI) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the FXI ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The KraneShares CSI China Internet ETF (KWEB) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the KWEB ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The VanEck Semiconductor ETF (SMH) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the SMH ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The iShares Semiconductor ETF (SOXX) could be impacted by Biden's order restricting investments in China's tech sectors.
The order could potentially affect the performance of companies within the SOXX ETF, which could in turn impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75