According to data obtained from the website of the U.S.-China Economic and Security Review Commission, as of February 25, 2019, there were 156 Chinese companies listed on the U.S. exchanges with a total market capitalization of $1.2 trillion. These companies are at risk of getting delisted as three sources familiar with the lingering US/China trade dispute hint that Donald Trump’s administration is considering delisting Chinese companies from US stock exchanges.

This would definitely take the dispute to an entirely new level, the outcome of which we can’t predict. The move is said to be part of a broader effort to limit US 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.

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The news has triggered a reaction from the stock exchange as major US stock indexes slipped. Shares of some of the Chinese companies listed on the US stock exchanges dropped as a result. Alibaba shares closed at 5.15% lower while that of JD.com fell 5.95% and Baidu Inc declined 3.67%. The iShares China Large-Cap ETF shed 1.15%. Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88% and shares of Nasdaq Inc declined 1.70%.

Delisting a listed company will not be an easy thing to do and at present, it is no clear how that would be done.

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(source)

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