New York-listed Chinese companies came under scrutiny last night after it emerged that the Trump administration was considering plans to strip their shares from American stock markets.
Officials in Washington are understood to have discussed whether to delist stocks as they consider ways to curb their country's financial investments in Chinese businesses. The prospect of such a move, which would escalate the trade war between the world's largest economies, sent shares in Alibaba, Baidu and JD.com sharply lower.
President Trump has approved wider talks over how to limit American investors' portfolio flows into China, according to Bloomberg, although he has yet to make a decision. His administration is said also to be looking at reducing the reach of US government pension funds in the Chinese market, but has yet to finalise a timeframe or mechanisms to corroborate such ideas.
Officials in Washington are understood to have discussed whether to delist stocks as they consider ways to curb their country's financial investments in Chinese businesses. The prospect of such a move, which would escalate the trade war between the world's largest economies, sent shares in Alibaba, Baidu and JD.com sharply lower.
President Trump has approved wider talks over how to limit American investors' portfolio flows into China, according to Bloomberg, although he has yet to make a decision. His administration is said also to be looking at reducing the reach of US government pension funds in the Chinese market, but has yet to finalise a timeframe or mechanisms to corroborate such ideas.
More than 150 Chinese companies were on the Nasdaq and New York Stock Exchanges in February, according to US government data.
The technology-heavy Nasdaq fell by 1.2 per cent after the reports while the S&P 500 shed 0.5 per cent. The Dow Jones industrial average slipped 0.3 per cent. The Chinese yuan dropped 0.4 per cent against the dollar in offshore markets, edging towards its weakest levels in about three weeks.
The technology-heavy Nasdaq fell by 1.2 per cent after the reports while the S&P 500 shed 0.5 per cent. The Dow Jones industrial average slipped 0.3 per cent. The Chinese yuan dropped 0.4 per cent against the dollar in offshore markets, edging towards its weakest levels in about three weeks.
The move against certain New York-listed shares comes at a fragile time in relations between the White House and Beijing, with officials due to resume negotiations in the US capital next month.
The US government is searching for additional leverage, having imposed tariffs on Chinese goods worth $360 billion. China has hit back with retaliatory levies on American exports.
Mr Trump's officials are poised to levy more duties on Chinese products in December, meaning that almost all the country's exports to the United States will face tariffs. Beijing has vowed to respond with future levies.
The US president attacked China at the United Nations this week, telling fellow world leaders that America remained "absolutely committed to restoring balance to our relationship".
Later, however, he stoked expectations of a settlement by publicly suggesting that a breakthrough "could happen sooner than you think". Chinese government officials "want to make a deal very badly", he claimed.
The US government is searching for additional leverage, having imposed tariffs on Chinese goods worth $360 billion. China has hit back with retaliatory levies on American exports.
Mr Trump's officials are poised to levy more duties on Chinese products in December, meaning that almost all the country's exports to the United States will face tariffs. Beijing has vowed to respond with future levies.
The US president attacked China at the United Nations this week, telling fellow world leaders that America remained "absolutely committed to restoring balance to our relationship".
Later, however, he stoked expectations of a settlement by publicly suggesting that a breakthrough "could happen sooner than you think". Chinese government officials "want to make a deal very badly", he claimed.
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