Beijing Blasts US Blacklist of Alibaba, Baidu, BYD

The US placed Alibaba Group Holding and Baidu on a blacklist of companies accused of aiding the Chinese military. Electric-vehicle maker BYD was added to the same list. Beijing said Monday it firmly opposes the move and will take countermeasures.

The designation falls under a US executive order that bars American investors from buying or holding equity in named companies. That includes the New York-listed ADRs of Alibaba and Baidu, as well as BYD's Hong Kong-listed shares.

For Alibaba, the blacklist adds a fresh layer of geopolitical risk. The stock carries an Alpha Score of 48 out of 100 on AlphaScala, rated Mixed. The score has been under pressure since late May. Tensions between Washington and Beijing escalated after the US expanded its review of Chinese technology supply chains.

US Treasury rules typically allow a wind-down period of at least 12 months for forced divestitures. Institutional holders have time to rebalance without fire-sale pressure. The uncertainty around additional designations keeps a lid on any immediate recovery.

Beijing promised unspecified countermeasures. Previous rounds of trade retaliation have targeted US agricultural exports and technology firms. The market reaction in early Asian trade was measured. BYD shares in Hong Kong dropped before paring some losses, according to Bloomberg data.

For a broader context on how such blacklists affect equity markets, see AlphaScala's stock market analysis.

The Manila Times first reported the blacklist and Beijing's response Monday. The US government has not officially commented on the addition of the three companies.