The U.S. is set to impose a ban on direct investments in some of the Chinese firms operating in the AI (Artificial Intelligence), quantum computing, and semiconductor space. According to a Wall Street Journal report, President Biden’s administration will release an executive order today to restrict private equity and venture capital investments in Chinese companies in the sectors mentioned above.
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American investors are required to notify the U.S. government about their investments in these domains. Additionally, investors could potentially incur fines and be compelled to divest their stakes in the event of rule violations.
The move will likely escalate the ongoing U.S.-China trade tensions and could affect several American corporations. The U.S. has already imposed restrictions on the export of advanced chips and chip manufacturing equipment to China. Further, it has blacklisted several Chinese companies for using American tech to bolster Chinese military advancements and for human rights abuses.
It’s worth noting that BlackRock (NYSE:BLK) and MSCI (NYSE:MSCI) are under investigation by a congressional committee for promoting investments in Chinese companies that are blacklisted by the U.S.
As the U.S. takes measures to safeguard its national security, let’s check what the Street recommends for BlackRock and MSCI stocks.
Is BlackRock a Good Stock to Buy?
Regardless of the congressional committee investigation, Wall Street analysts are bullish about BlackRock stock. It has a Strong Buy consensus rating on TipRanks, with nine out of 10 analysts covering the stock recommending a Buy.
Analysts’ average price target of $817.50 implies 17.29% upside potential.
Is MSCI a Buy or Sell?
Wall Street analysts are cautiously optimistic about MSCI stock. It has received six Buys, three Holds, and two Sells for a Moderate Buy consensus rating. Analysts’ average price target of $570.82 implies 4.15% upside potential.
