Bankinter | Chinese authorities ban the use of cybersecurity products from American and Israeli companies for national security reasons. Among the names mentioned are Palo Alto, Fortinet, CrowdStrike, SentinelOne, CyberArk and even companies such as VMWare (acquired by Broadcom), Mandiant and Wizz (acquired by Alphabet) and Orca Security and Cato Networks (acquired by Thales).
Bankinter analysis team’s view: This is a further step by the Chinese authorities to protect local technology, in line with the numerous IPOs seen in recent weeks on the Hong Kong stock exchange. All these actions stem from the Chinese government’s drive to develop national alternatives to US technology. It should be noted that most of these companies have little direct exposure to China, so the declines seen on Wednesday of up to 3% in some cases seem disproportionate to us and represent an opportunity to enter the sector.
