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The US blacklists a few more Chinese companies

It was a shock for Chinese firms on Wednesday, as a lot of firms saw their stock plummet, with one company tumbling as much as 25%. 

  • What’s happening?! The US is targeting on Chinese tech and biotech 🧪 companies.

Ahh… really?

US regulators are set to place over 24 Chinese firms on an “entity list” restricting exports from US companies without a government license – this includes biotech firms.

  • Who’s already on the list? 🧐 Quite a few Chinese companies – the US wants to limit Chinese companies’ access to US technology and machinery.
  • 8 firms already on this list were also placed on an investment blacklist – one notable company blacklisted was DJI, the world’s largest commercial drone manufacturer.

We’ll have to postpone this… Just last week, the AI company SenseTime postponed its Friday IPO after the US placed it on a blacklist. This definitely has investors nervous… (More about SenseTime here)

Bad news for biotech stocks then?

Disastrous. 🤦‍♀️ One biotech company BeiGene plunged 📉 16.4% on its Shanghai debut on Wednesday, as many investors were concerned the US might place further sanctions on biotech companies.

  • BeiGene’s US shares have tumbled nearly 20% this month, as US regulators could kick Chinese firms from listing on US exchanges (Our story on that here)
  • Shares of HK-listed biotech firms all sharply fell after the announcement, with Wuxi Biologics sinking as low as 25%.

We’re watching this 👀 A Chinese official said he was opposed to the US “suppression” of Chinese companies, and would closely watch the situation. All this tension right before the holidays…🎄

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