Business
Trump Considering Delisting Chinese Companies from US Markets
China’s Foreign Minister Wang Yi vowed to stand firm in the US trade row, warning that protectionism could trigger a world recession.
With Asian stocks ended in the red for the second consecutive week, the White House is now threatening to restrict listed Chinese companies on US markets. The Nasdaq recording its worst week in two months.
US President Donald Trump is considering de-listing Chinese companies from US stock exchanges, multiple US reports suggested,Friday.
The move would reportedly come as part of a broader effort to limit US investment in Chinese companies. …and partly motivated by security concerns.
These threats are intended to increase pressure on Beijing to strike a bargain, Gregori Volokhine, strategist for Meeschaert Financial Services, told Reuters.
Legal experts cautioned that Trump lacks the statutory authority to enact such a move. But that he may nonetheless strong-arm investment firms to enforce his will.
The possibility of severe new restrictions on investment in China sent stocks into a tailspin on Wall Street.
The Wall Street nosedive comes in the wake of a relatively positive week. Where markets climbed as analysts said fresh optimism about the US-China trade talks was gathering pace.
Sharp declines in Stock Markets
However, big players on the stock market saw their share prices fall following Friday’s reports.
Shares of Hangzhou, Zhejiang-based Alibaba ended down 5.15%. JD.com saw its price fall 5.95% and Baidu Inc went down by 3.67%. The iShares China Large-Cap ETF lost 1.15%.
New York Stock Exchange-owner Intercontinental Exchange Inc ended the day down 1.88% and shares of Nasdaq Inc lost 1.70% in value.
Reports of the strategic moves from Washington also hit oil prices.
Meanwhile, China’s Foreign Minister Wang Yi vowed to stand firm in the US trade row. Warning that protectionism could trigger a world recession.
“The lessons of the Great Depression should not be forgotten,” he told the United Nations General Assembly in New York.
“Tariffs and provocation of trade disputes, which upset global industrial and supply chains, serve to undermine the multilateral trading regime and global economic and trade order,” he said.
“They may even plunge the world into recession,” the foreign minister added.
