The Biden administration has said the US is competing with China and restricted US companies from selling high-end chip technology to China.
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BEIJING — A ban on US investment in Chinese technology could increase market volatility — but some sectors could get away with it, Bank of America analysts say.
The White House is reportedly considering Executive Order Bans U.S. Investments in Chinese High-End TechArtificial intelligence, quantum computing, 5G, advanced semiconductors and more, according to a Politico report last week.
It is unclear if or when such a rule will take effect. The report indicated ongoing internal discussions within the US government.
A Hong Kong-based Bank of America research analyst said, “A strict investment ban on U.S. investors could lead to a large supply of equities during the grace period, and in the short term “There could be a lot of volatility,” he said. “The potential long-term effects are less clear.”
“AI is pretty pervasive in today’s online world, but companies that don’t have big business in external AI solutions [will] Unlikely [of] We are being targeted by the U.S. side,” the analyst said.
Bank of America’s report noted that “examples include online travel agencies, pure gaming and music companies, automotive and real estate online verticals, niche e-commerce specialty stores, and logistics-focused e-commerce companies. It is.”
Analysts did not name specific stocks.
Chinese stocks are about to rebound recently after the last two years of sharp declines.
The country ended its strict zero Covid policy in December. Late last year, the United States and China also reached an audit agreement. significantly reduced risk Chinese companies must be delisted from U.S. stock exchanges.
Some of the U.S.-listed Chinese stocks had the largest share of U.S. institutional ownership, including the KFC operator. dim suma live streaming company fun and pharmaceutical companies Zakenaccording to a Jan. 25 Morgan Stanley report.
companies in the semiconductor industry Dako New Energy It held nearly 27% of U.S. institutional investors, according to Morgan Stanley.
the data showed Alibaba had the most U.S. institutional ownership by dollar value, but only 8.2% of the shares.
In a separate report on Monday, Morgan Stanley equity strategist Laura Wang said the Biden administration’s focus is on targeting technology that has ties to the Chinese military.
She pointed to signs of stabilization in US-China relations, including US Secretary of State Anthony Blinken’s planned visit to Beijing over the next few days and the possibility of a Chinese president. Xi Jinping He will visit the United States for the Asia-Pacific Economic Cooperation Summit scheduled to be held in San Francisco in November.
The White House and China’s Ministry of Foreign Affairs did not immediately respond to requests for comment on Politico’s report.
— CNBC’s Michael Bloom contributed to this report.
