NEW YORK (Reuters) – Shares in a slew of Chinese stocks traded in the United States and index providers slumped on Friday, after reports the Trump administration is considering delisting Chinese firms from U.S. stock exchanges.
The White House was considering the possibility of delisting Chinese companies from U.S. stock exchanges, a source briefed on the matter told Reuters, confirming an earlier report by Bloomberg. Such a move would be a radical escalation of trade tensions between the two countries.
“This type of thing escalates the situation and it is why we call it a war,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
“It would certainly decrease their market value somewhat but it wouldn’t put them out of business by any means – a lot of institutional buyers will buy the foreign shares.”
Shares of Hangzhou, Zhejiang-based Alibaba (BABA.N) hit a six-week low of $163.15 and was last trading down 5.91% at $164.66. JD.com (JD.O) fell 6.76% to $27.58 and Baidu Inc (BIDU.O) declined 4.14% to $100.72. The iShares China Large-Cap ETF shed (FXI.P) 1.34%.
Reporting by Chuck Mikolajczak, Editing by Rosalba O’Brien and Chizu Nomiyama