US Treasury denies that it plans to block Chinese companies from US stock exchanges


The US has no current plans to block Chinese companies from listing on US stock exchanges, according to a Bloomberg report that cited a US treasury official. Treasury spokeswoman Monica Crowley told the publication: "The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time."

US President Donald Trump's Administration has reportedly been seeking leverage in trade talks with China over the past week after the two countries recently implemented steep tariffs on billions in each other's goods. One strategy that the Administration is considering is a limit on US investors' portfolio flows into Chinese firms.

The talk of delisting Chinese companies that are publicly traded in US markets caused significant jitters last week. Leading US-listed Chinese firms including Alibaba and Baidu saw their shares slip significantly, while the S&P 500 was down 0.5% on Friday. In addition to delistings, the Administration is also reportedly considering a limit on US citizens' exposure to China's economy via US pension funds and caps on US-managed funds' exposure to Chinese companies.

The discussions have involved multiple government divisions including the US Treasury and the National Economic Council. Trump aides and advisors including Peter Navarro and Steve Bannon are reportedly behind the strategy, which is only one among a broad range of US-China options being considered.

The Chinese investment limit option is being pushed under the premise that Chinese companies have weak governance that expose US investors to potential fraud. Additionally, some in the Administration say that the tight relationship between China's Communist government and public companies exposes US investors to the country's political leadership and effectively helps to finance their strength.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Investing giant Pimco is considering trading cryptocurrencies

Pimco, a $2 trillion investment firm, could potentially begin trading spot cryptocurrencies, the firm’s chief investment officer Daniel Ivascyn confirmed to CNBC.  The firm, which has engaged with the market via crypto-linked securities, is now looking at “trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the […]
Read Full Story
Oct 20, 2021, 6:59PM UTC

Here's how one of NYSE's largest market makers is breaking into DeFi

On this episode of The Scoop, founder Ari Rubenstein and founder & CEO Ryan Sheftel joined host Frank Chaparro to discuss the launch of their new crypto firm, called Radkl. Radkl, which was born out of trading firm and New York Stock Exchange market maker GTS, is a new digital asset trading business. GTS currently […]
Read Full Story
Oct 20, 2021, 2:23PM UTC