close

News WrapGet Handpicked Stories from our editors directly to your mailbox


US Treasury says no plans to block Chinese listings 'at this time': Report

File photo. Photograph:( Reuters )

Reuters New Delhi, India Sep 29, 2019, 03.57 PM (IST)

The United States does not currently plan to stop Chinese companies from listing on US exchanges, Bloomberg reported on Saturday, citing a US Treasury official.

"The administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time," Bloomberg quoted https://bloom.bg/2obHkDb Treasury spokeswoman Monica Crowley as saying.

Reuters reported on Friday that President Donald Trump's administration is considering delisting Chinese companies from US stock exchanges in a move that would be part of a broader effort to limit US investment in Chinese companies.

The Treasury did not immediately respond to a Reuters request for comment.

Major US stock indexes slipped on the news, which came days before China celebrates the 70th anniversary of the birth of the People's Republic on October 1, when the world's No. 2 economy will shut down for a week of festivities.

Shares of Hangzhou, Zhejiang-based Alibaba ended down 5.15 per cent. JD.com fell by 5.95 per cent and Baidu Inc declined by 3.67 per cent. The iShares China Large-Cap ETF shed 1.15 per cent.

Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88 per cent and shares of Nasdaq Inc declined by 1.70 per cent.

It was not immediately clear how any delisting would work.

Trade talks between the United States and China are expected to be held October 10-11 after months of tit-for-tat moves by both sides which have weakened global growth and driven rollercoaster moves in markets.

Story highlights

Trump's administration is considering delisting Chinese companies from US stock exchanges in a move that would be part of a broader effort to limit US investment in Chinese companies.