The rapid growth sanctions and red-flag programs from the US and major market economy governments affects many Chinese security issuers, creating significant legal and reputational risk for foreign investors. Our Sanctions dataset uses a proprietary framework to track and quantify the direct and indirect exposure of Chinese security issuers to major blacklists.
Our Sanctions Exposure Score serves as a complement to the Fundamental Risk data and reflects both the severity of a sanction or red-flag list designation and the degree of exposure. Exposure to a list with less severe consequences—like the World Bank’s Listing of Ineligible Firms and Individuals—will result in a lower risk score than inclusion in a sanctions regime with severe legal implications like the Entity List. Likewise, our model will assign a higher score where an issuer is directly included on a blacklist compared to indirect exposure through a shareholder, a subsidiary, or an affiliate.
Our Sanctions Tracker provides an overview of the latest changes in sanctions or red-flag programs and the impacted entities. Clients can use our Sanctions Regimes data to parse individual blacklists and retrieve details on the security issuers exposed to them. Users can also pick individual companies and see their Issuer Exposure to sanctions and red-flag lists, along with their Sanctions Exposure Scores tracked over time. The Industries tab allows clients to choose a specific business area and see which sanctions and red-flag regimes companies are exposed to, along with their Sanctions Exposure Scores.
