Global investors are losing confidence in securities linked to shares of companies in the world's geopolitical hot spots, investors and analysts said, after Moscow moved to de-list Russian depositary receipts from foreign exchanges in retaliation for Western sanctions over the war in Ukraine. Moscow's actions have deprived many foreign investors of the ability to trade in Russian securities, including depositary receipts. Depositary receipts, or DRs, are certificates issued by a bank representing shares in a foreign company traded on a local stock exchange.
The new Russian Presidential decree authorizes the suspension of voting rights of some Western minority shareholders and members in Russian companies until the end of 2023. .
Whether investors and companies choose to divest their Chinese assets, accept sunk costs or double down to wait for a Chinese resurgence, they will have to be innovative to cope with the quick-changing terrain.