How ETFs were impacted by US sanctions against China
The US government’s blacklisting of Chinese companies sent ripples through the ETF industry.
Alex Rolandi reports on how sanctions may have had more impact on investors and index providers than on the country itself.
When US sanctions against Chinese companies increased earlier this year, benchmark providers had to revise their listings and fund managers reassessed portfolios. BlackRock and Vanguard, who were significantly exposed to the newly blacklisted companies, had to offload billions of dollars as a result of Donald Trump’s executive order banning US investment in Chinese securities with military connections.
ETFs: When companies are blacklisted
When the US increased sanctions against China increased earlier this year, it showed how the ETF industry can be vulnerable to government policy.
Benchmark providers revised listings, removing various Chinese companies from indices, while ETF providers such as BlackRock and Vanguard had to offload billions to comply with the new restrictions.
Geopolitical tensions are to be expected when investing in emerging markets. “It’s the nature of the beast,” says Mark Fitzgerald, head of product specialism at Vanguard, speaking to
Funds Europe for the latest edition of the ETF report.
Vanguard was heavily impacted by the sanctions as it had significant exposure to the Chinese market.
36 hotels across Hong Kong picked for initial phase of scheme
Scheme is expected to boost business for struggling hotels
Hoteliers claim inconsistency in selection process
Hong Kong has established a quarantine hotels scheme to support her intensified infection control measures against a surge in Covid-19 community cases. Since December 22, all travellers arriving in Hong Kong from countries outside of China must undergo a 14-day compulsory quarantine at designated quarantine hotels.
Designated quarantine hotels will only receive quarantined travellers who will arrive in appointed transportation provided by the government.
The Hong Kong government has appointed 36 properties to its official list of quarantine hotels to support compulsory quarantines for all arriving travellers