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US banks ditch products linked to Chinese stocks after NYSE ban

January 11, 2021. Summarized by summa-bot.

Compression ratio: 59.6%. 1 min read.

Pedestrians wearing protective masks walk past Goldman Sachs Group Inc. headquarters in New York, U.S., on Sunday, July 12, 2020. Goldman Sachs is scheduled to release earnings figures on July 15. Photographer: Jeenah Moon/Bloomberg via Getty Images

Wall Street banks are shaking up their offerings in Hong Kong, pulling the plug on hundreds of products to comply with the US ban on Chinese businesses.

New York (CNN Business)Wall Street banks are shaking up their offerings in Hong Kong, pulling the plug on hundreds of products to comply with the US ban on several Chinese businesses.

Fund manager State Street Global Advisors said in a statement that its Hang Seng (HSI) index tracker TraHK will no longer invest in businesses deemed to be affiliated with or supporting the Chinese military that have been sanctioned under President Donald Trump's November executive order.

Last week, the New York Stock Exchange banned Chinese telecom companies to comply with the executive order -- although only after flip-flopping on the issue multiple times.

Trump also signed an executive order last week banning transactions with eight Chinese payment apps, including Alibaba (BABA) affiliate Ant Group's Alipay.

The outgoing Trump administration hasn't made it easy to keep up with the government's view on Chinese firms doing business in the United States.

Bipartisan pressure to be tough on China is expected to continue in the Biden era

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

"There is bipartisan pressure to remain tough on China," said Jaret Seiberg, analyst at Cowen, noting that Biden will have "much bigger priorities to advance, such as secure another stimulus [package]. "

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

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