Has BlackRock Invested in Blacklisted Chinese Companies?

BlackRock (BLK) along with index provider MSCI were facilitating investments with Chinese companies that are blacklisted. The tensions between the United States and China are spilling into corporate America. Companies are being scrutinized and looked into to make sure they do not affect the country.

Letters dated on Monday from the House of Representatives Select Committee on the Chinese Communist Party (CCP) show that firms handled the flow of American money into companies fueling China’s military advancement.

BlackRock of course denied any wrongdoing, saying, “With all investments in China and markets around the world, BlackRock ( BLK ) complies with all applicable U.S. government laws. We will continue engaging with the Select Committee directly on the issues raised,”

MSCI is currently “Reviewing the inquiry” by the House committee.

China last month, reduced some of their exports of metals widely used in the semiconductor sector. This move was aimed at protecting national security.  I believe this move was due to the rising tension and efforts by the United States to curb China’s technological advances. Over the last few years, China has poured billions into their military and technology.

What does this mean for BlackRock?

This could potentially reduce BlackRock’s share price as investors lose faith in the company. However, with their massive portfolio I do not think their share price will lose much if any. BlackRock is a powerhouse and currently buying up real estate left and right. Their share price is currently $732.26 but it did experience a 7% drop in price. Most likely due to the news that came out this week. Right now, they are investing 120 billion into the real estate market. With that kind of money on hand, I do not think this news will affect them much.

Should I Invest?

I believe if you can afford the share price then I think you should. Given time, I can see BlackRock hitting $1k share price.  I can realistically see them hitting this price within two-to-three years.

Thanks for reading and let me know what you think below.