Trump considers delisting Chinese firms from US markets: sources

President Donald Trump’s administration is considering delisting Chinese companies from US stock exchanges, three sources briefed on the matter said on Friday, in what would be a radical escalation of US-China trade tensions. The move would 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.

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 Oct. 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 5.95pc and Baidu Inc declined 3.67pc.

The iShares China Large-Cap ETF shed 1.15pc. Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88pc and shares of Nasdaq Inc declined 1.70pc. “This is a very high priority for the administration. Chinese companies not complying with the PCAOB (Public Company Accounting Oversight Board) process poses risks to US investors,” the source said.