The White House is weighing a plan to stop Chinese companies listing on US exchanges in a move that would take its trade war with China to Wall Street, reported the Financial Times.
Other options include curbing the ability of US government pension funds to buy Chinese equities, said FT sources.
A widening of the US-China economic conflict into the arena of capital markets has long been pushed by hawks in Washington, particularly Marco Rubio, the Republican senator from Florida, and like-minded officials within the administration. But it has been resisted by other Trump advisers who fear that it could deal a fresh blow to markets and undermine investor confidence.
Over a day after news of the discussions were first reported by Bloomberg, Treasury spokeswoman Monica Crowley released a statement saying: “The administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time.”
The idea prompted a pointed response from one of the largest US stock markets, Nasdaq, which said in a statement: “One critical quality of our capital markets is that we provide non-discriminatory and fair access to all eligible companies. The statutory obligation of all US equity exchanges to do so creates a vibrant market that provides diverse investment opportunities for US investors.”