Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  JPMorgan Chase & Co.    JPM

JPMORGAN CHASE & CO.

(JPM)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Trump's China Blacklist Sparks Reviews at Index Compilers

11/23/2020 | 04:38am EST

By Frances Yoon

Index compilers FTSE Russell, JPMorgan Chase & Co. and MSCI Inc. are rethinking their stance on securities from companies that the U.S. government says help the Chinese military.

On Nov. 12, President Trump signed an executive order barring Americans from investing in 31 Chinese companies that the U.S. says supply and otherwise support China's military, intelligence and security services.

The blacklist sparked a selloff in stocks and bonds issued by some targeted companies or their units, though analysts said it wasn't clear if the prohibition extended to publicly traded subsidiaries as well as to companies named directly by U.S. authorities. Adding to the uncertainty, the ban is due to start on Jan. 11, just days before President-elect Joe Biden is due to take office.

Late last week, MSCI said it was consulting investors on the impact of the ban, including whether it needed to change existing stock indexes or introduce new ones.

FTSE Russell, a unit of London Stock Exchange Group PLC, said its policy was to exclude securities covered by U.S., UK or European Union sanctions.

The index provider said it was " seeking rapid feedback from clients and other stakeholders on the scope of the sanctions and the timing of the deletion of the affected securities from FTSE Russell indexes." FTSE Russell said it had asked the Treasury Department's Office of Foreign Assets Control to define the scope of these sanctions. It plans to reach a decision by Dec. 4.

The overall impact on benchmarks is likely to be modest. Of the 10 biggest stocks in the MSCI China Index, China Mobile is the only one that would be affected by the ban. It has a market value of $124 billion, with stock listed in Hong Kong and New York, and makes up about 1.3% of the MSCI China index.

The order also has implications for corporate bond markets. Kenneth Ho, head of Asia credit strategy for Goldman Sachs, estimates that targeted companies and their subsidiaries have about $53.9 billion in offshore debt, or about 6% of all Chinese bonds issued in dollars, euros or yen.

FTSE Russell said it was also reviewing the order's impact on its bond indexes. JPMorgan, another major bond-index provider, said it wouldn't include new bonds issued by any of these companies in its benchmarks.

The bank will keep existing bonds in its indexes, but said it will "re-evaluate once there is more clarity on the impact to benchmark replication," according to a JPMorgan note published last week. The note said 16 targets or their subsidiaries had issued bonds that were included in its indexes, and they make up 3.7% of the JPMorgan Asia Credit Index, which has about $80 billion in assets benchmarked against it.

Prices of bonds issued by some of these companies, including China National Chemical Corp., have fallen since the order. The company, often known as ChemChina, has borrowed heavily in international markets in recent years after spending $43 billion to acquire Switzerland's Syngenta AG.

Owen Gallimore, head of credit strategy at ANZ, said most international buyers of such Chinese dollar bonds were passive investors, with their holdings closely tracking a benchmark index. That meant bonds that were cut off from indexes have a meaningfully larger spread, or yield premium, versus comparable government debt, he said.

Write to Frances Yoon at frances.yoon@wsj.com

(END) Dow Jones Newswires

11-23-20 0437ET

Stocks mentioned in the article
ChangeLast1st jan.
CHINA INDEX HOLDINGS LIMITED 8.03% 1.48 Delayed Quote.-59.34%
CHINA MOBILE LIMITED -0.95% 47.15 End-of-day quote.6.67%
JPMORGAN CHASE & CO. -0.41% 131.58 Delayed Quote.3.97%
LONDON STOCK EXCHANGE PLC -2.67% 8818 Delayed Quote.0.44%
MSCI CHINA (STRD, UHD) -2.13% 122.028 Real-time Quote.15.02%
MSCI, INC. 0.28% 404.61 Delayed Quote.-9.39%
THE GOLDMAN SACHS GROUP, INC. -0.45% 281.76 Delayed Quote.7.33%
All news about JPMORGAN CHASE & CO.
01:07aJunior bankers feel left behind in COVID-era banking boom
RE
01/26Duck Creek Technologies, Some Stockholders Start 8 Million Share Offering
MT
01/26JPMORGAN CHASE : to Present at the Credit Suisse Financial Services Forum
PU
01/26Morgan Stanley, Goldman lead bonus jump for bankers in Asia - Bloomberg News
RE
01/26BARCLAYS : Working from home is losing its effectiveness, bank executives say
RE
01/26PepsiCo, Beyond Meat Form Plant-Based Foods Venture
DJ
01/26IAC/INTERACTIVECORP : JPMorgan Adjusts Price Target on IAC/InterActiveCorp to $2..
MT
01/26JPMORGAN CHASE : to Present at the Credit Suisse Financial Services Forum
BU
01/26TEXAS CAPITAL BANCSHARES : JPMorgan Downgrades Texas Capital Bancshares to Under..
MT
01/26Moonpig eyes valuation of more than 1 billion pounds from London IPO
RE
More news
Financials (USD)
Sales 2020 120 B - -
Net income 2020 23 574 M - -
Net Debt 2020 - - -
P/E ratio 2020 17,1x
Yield 2020 2,74%
Capitalization 401 B 401 B -
Capi. / Sales 2020 3,35x
Capi. / Sales 2021 3,49x
Nbr of Employees 255 351
Free-Float 73,5%
Chart JPMORGAN CHASE & CO.
Duration : Period :
JPMorgan Chase & Co. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JPMORGAN CHASE & CO.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 144,69 $
Last Close Price 131,58 $
Spread / Highest target 30,7%
Spread / Average Target 9,97%
Spread / Lowest Target -27,8%
EPS Revisions
Managers and Directors
NameTitle
James Dimon Chairman & Chief Executive Officer
Gordon A. Smith Co-President & Co-Chief Operating Officer
Daniel E. Pinto Co-President & Co-Chief Operating Officer
Jennifer A. Piepszak Chief Financial Officer
Lori A. Beer Chief Information Officer
Sector and Competitors