The Trump administration may be considering ways to limit the flow of U.S. capital to Beijing, but forcing the delisting of Chinese stocks from American exchanges shouldn’t be one of them, experts say.
Former chairman of Morgan Stanley Asia Stephen Roach isn’t sure if the Trump administration even has the ability to complete such a delisting, but it’s clear to him that no one in the administration had thought through the potential repercussions of attempting such a coup. But China already warned the U.S. of “significant repercussions” and in retaliation, could simply refuse to transfer shares, meaning investors would be susceptible to losing the entirety of the capital they invested in them, Roach said.As of February, 156 Chinese companies worth US$1.2 trillion were listed on the NASDAQ, New York Stock Exchange and the NYSE American, according to U.S. government data. Chinese companies are able to list on U.S.
In Canada, the Canada Pension Plan Investment Board’s third-largest investment in its disclosed equity portfolio to the SEC is in Alibaba at US$1.3 billion. According to its 2019 annual report, the pension fund has more than $50 billion invested in Greater China. A CPPIB spokesperson said the pension fund remained “confident” in its portfolio but wouldn’t “speculate on bilateral and multilateral trade tensions.
The move to delist Chinese stocks would also seriously cramp the idea of a free market in the U.S., Innes said, potentially leading to other foreign companies fearing the same outcome and fleeing U.S. exchanges.
If the honeymoon is over, fine. But any transitions should be slow and gradual to avoid financial pain.
Most them with the 'high command' of the PRC cabal
Paper tigers.
Did you see those arsenal; they are build on your money and mine; time to defang
Not to mention China owns the debt of the world right now. 🤷🏼♀️
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