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US planning to throw Chinese companies off American exchanges

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The Donald Trump administration is discussing how to limit the investment of American investors in the Chinese economy, Bloomberg reports. One option is forced delisting of Chinese companies from US exchanges.

Discussions about this began in Washington during the current brief respite in the trade war between the two largest economies in the world. The reason for them could be the fact that China began to lift restrictions on foreign investment in its market, writes Bloomberg. According to the publication, the Trump administration is studying the possible delisting of Chinese companies from US exchanges and the introduction of restrictions on the investment of state pension funds in the US in the Chinese market.

  • Among the options discussed is a complete blockage of US investment in Chinese companies, CNBC writes with reference to its sources. However, they also stipulate that discussions are at an initial stage.
  • FT sources confirm that the administration may block listing of Chinese companies in the United States, and that the trade war will thus spread to financial markets.

On this news, the quotes of Chinese IT giants in the United States fell sharply. The Alibaba Group, whose IPO was the largest in history, fell 5.2% on the NYSE, JD.com on the NASDAQ – almost 6%, Pinduoduo – 4.2%, Baidu – 3.67%.

  • According to Bloomberg, the administration is also examining whether the United States can impose restrictions against Chinese companies that are included in stock indexes.
  • In recent years, a large number of Chinese companies have been included in the calculation of the largest indices, which are targeted by a wide range of investors. For example, hundreds of them from the last year are included in the MSCI indices.

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