Published by Global Banking and Finance Review
Posted on February 4, 2025
(Reuters) - Shares of Calvin Klein-owner PVH Corp and genetic testing company Illumina fell in U.S. premarket trading on Tuesday after China placed the two companies on its "unreliable entity" list, making them eligible for sanctions.
Companies added to the blacklist can be subject to fines and a broad range of other sanctions, including a freeze on trade and revocation of work permits for foreign staff.
PVH had already been under scrutiny from Chinese regulators over "improper" conduct related to the Xinjiang region.
For Illumina, China accounts for about 7% of sales. Two of its Chinese rivals, MGI and BGI, were listed in a U.S. bill that aims to restrict business with several biotech companies on grounds of national security.
Shares of Intel also fell 1% to $19.20 in premarket trading after the Financial Times reported that Chinese regulators were also looking to launch a formal probe into the chipmaker.
An influential Chinese industry group called for a security review late last year against Intel's products sold in China.
The announcement was part of a string of measures by China in response to new U.S. tariffs on Chinese goods. China also said it was investigating Alphabet.
However, Alphabet's shares edged up nearly 1%, as some of its key products, including its Google search engine, are already blocked in China and its revenue from the country represents only about 1% of its global sales.
Illumina's shares were down 4.1% at $125.71, while PVH's stock fell 2.4% to $80.49 before the opening bell.
(Reporting by Mariam Sunny and Lisa Pauline Mattackal in Bengaluru; Editing by Pooja Desai)
