Trump administration considers a ban on Chinese listings in US

The White home is deliberate to prevent Chinese firms listing on US exchanges in an exceedingly move that might take its trade war with China to Wall Street.

President Donald Trump’s advisers are exploring steps to limit money investments between the US and China, consistent with individuals briefed on the plans. Different choices embrace to curb the power of American government pension funds to buy Chinese equities.

The US equity benchmark, the S&P 500, turned negative once the news broke, ending Friday down to 0.5 percent. There was conjointly a pointy fall within the shares of recent New York-listed Chinese firms and a weakening of the renminbi.

E-commerce giant Alibaba’s shares were down 5 percent, search engine Baidu fell nearly 4 percent and therefore the depository receipts of online distributor JD.com were down 6 percent, severally.

As of February 2019, 156 Chinese firms with a complete capitalization of $1.2tn were listed on the most important US stock exchanges, consistent with the US-China Economic and censorship Commission, with a minimum of eleven of them being state-owned.

China’s renminbi, listed in foreign exchange markets outside the mainland, weakened by the maximum amount as 0.4 percent, a sizeable move for the currency, however, tempered that decline to be 0.2 percent softer at 7.14 per US dollars.

After a flurry of tariff escalations discomposed markets in August, the US and Chinese officers are exploring ways to reduce tensions prior to next month’s new round of talks.

If the US proceeds planning the precise measures to limit Chinese access to US capital markets won’t be straightforward and will be challenged.