The U.S. is expected to add more Chinese firms, including the largest commercial drone maker as well as biotech and healthcare firms, to its investment blacklist later this week.
Several media reports say the U.S. plans to add eight Chinese firms, including the drone maker DJI Technology Co., to an investment blacklist on Thursday (December 16).
The U.S. commerce department is also set to place more than two dozen Chinese firms, some of them involved in biotechnology, on an “entity list” that restricts exports to them by U.S. firms.
The report prompted a selloff in Chinese healthcare shares, knocking 3.2% off a mainland China stock index tracking the sector.
The impact was sharper in Hong Kong, where the Hang Seng Healthcare Index was down 7.6% in late day trading.
U.S. investors are barred from taking stakes in companies on the list, which currently comprises about 60 companies.
Chinese companies expected to be added to the list include image-recognition software firm Megvii and supercomputer maker Dawning Information Industry, among others.