A US treasury official said there are no plans to stop Chinese firms from listing on US exchanges, a day after a report that the Donald Trump administration is discussing ways to limit US investors’ portfolio flows into China.
“The administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time,” Treasury spokeswoman Monica Crowley said in an emailed statement on Saturday.
She was responding to Friday’s Bloomberg News report on various measures under consideration by the US, including this one. The report unnerved markets, with the S&P 500 Index closing about 0.5 per cent
lower. US-listed shares of China-based companies, such as Alibaba Group Holding and Baidu, tumbled.
Other potential measures include limiting Americans’ exposure to the Chinese market through government pension funds, and ways to put caps on Chinese companies included in stock indexes managed by US firms, according to people familiar with and involved in the discussions. Crowley’s statement didn’t address or rule out any of those possibilities.
Administration officials for weeks have been examining options, and the treasury has been participating in inter-agency meetings chaired by Larry Kudlow, the National Economic Council director, the people said.
Still, the push largely comes from Trump’s more hawkish aides, like White House trade adviser Peter Navarro, and outside advisers like Steve Bannon. The NEC and treasury are wary of market reaction and are working to ensure any plan would be executed in a way that doesn’t spook investors, the people added.