U.S. Adds 13 Companies In China To Unverified List
Portfolio Pulse from Benzinga Newsdesk
The U.S. government has added 13 Chinese companies to its 'Unverified List' according to a Reuters report citing an official notice. This action could potentially affect trade and business operations between these companies and their U.S. counterparts.
December 19, 2023 | 1:57 pm
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NEUTRAL IMPACT
The addition of Chinese companies to the U.S. 'Unverified List' may have a marginal impact on the SPDR S&P 500 ETF Trust (SPY) due to potential tensions in U.S.-China trade relations.
While SPY is a broad representation of the U.S. market, the direct impact of the 'Unverified List' on U.S. companies may be limited. However, escalating trade tensions could indirectly affect market sentiment.
CONFIDENCE 65
IMPORTANCE 30
RELEVANCE 40
NEGATIVE IMPACT
The inclusion of 13 Chinese companies to the U.S. 'Unverified List' may create uncertainty for investors in the iShares China Large-Cap ETF (FXI), potentially affecting its performance.
The 'Unverified List' can lead to increased compliance costs and restrictions for the listed companies, which may negatively impact the Chinese market and, by extension, FXI, which tracks large-cap Chinese stocks.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70