Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 9, 2019. REUTERS/Brendan McDermid
Reuters: Trump considers delisting Chinese firms from U.S. markets: sources
WASHINGTON (Reuters) - President Donald Trump’s administration is considering delisting Chinese companies from U.S. stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of U.S.-China trade tensions.
The move would be part of a broader effort to limit U.S. investment in Chinese companies, two of the sources said. One said it was motivated by the Trump administration’s growing security concerns about the companies’ activities.
Major U.S. stock indexes slipped on the news, which came days before China celebrates the 70th anniversary of the birth of the People’s Republic on Oct. 1, when the world’s No. 2 economy will shut down for a week of festivities.
Shares of Hangzhou, Zhejiang-based Alibaba (BABA.N) ended down 5.15%. JD.com (JD.O) fell 5.95% and Baidu Inc (BIDU.O) declined 3.67%. The iShares China Large-Cap ETF (FXI.P) shed 1.15%.
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WNU Editor: This is long overdue. If China wants to be listed on U.S. markets they must open their books to conform to U.S. law and regulations. I know this is a sore point for Chinese companies and the Chinese government. They do not want foreigners to know their real financial situation. But I say too bad. If you want access to American capital, you have to open your books just like everyone else.