I saw Stellantis was added to Freetrade so I took a moment to look it up which led me to seeing it’s 4.9% owned by a Chinese firm.
Said Chinese firm is 100% owned by the Chinese Government which has me dubious.
Does this ownership stake mean a UK citizen cannot invest? (In reference to the information on Gov.uk on China which itself is vague on this matter).
Stellantis has Chinese investment but it’s a merger between French and Italian automakers and headquartered in Amsterdam.
It’s listed on NYSE, Paris and Italian markets.
Whereas shares of Chinese companies like NIO, Alibaba do not trade on NYSE - what is listed are American depositary receipts (ADR).
Now, some ADRs are eligible to be held in an ISA, but the requirement from HMRC is that an ADR is only eligible if the holder of the ADR also holds beneficial ownership of the underlying share represented by that ADR, by virtue of ownership of the ADR.