U.S. Republican Lawmakers Send Letter To China-Based E-Commerce Companies Raising Concerns Over Data Privacy And Security Risks For U.S. Users
Portfolio Pulse from Benzinga Newsdesk
U.S. Republican lawmakers have sent a letter to China-based e-commerce companies expressing concerns about data privacy and security risks for U.S. users, according to a statement cited by Reuters.
December 20, 2023 | 5:31 pm
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NEGATIVE IMPACT
The iShares China Large-Cap ETF (FXI), which includes China-based e-commerce companies, may face negative sentiment due to concerns raised by U.S. lawmakers over data privacy and security risks.
The letter from U.S. lawmakers directly addresses the companies that are likely constituents of the FXI ETF. This could lead to negative investor sentiment towards these companies and the ETF as a whole, as regulatory scrutiny could imply potential restrictions or penalties that may affect their operations and profitability.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see indirect effects as the letter from U.S. lawmakers could increase tensions between the U.S. and China, potentially impacting the broader market sentiment.
While SPY is not directly related to China-based e-commerce companies, increased regulatory scrutiny and geopolitical tensions can affect global market sentiment and thus have a potential indirect impact on the broader market, which SPY represents.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 30