U.S. Treasury officials downplayed recent media reports about delisting discussions amidst growing momentum in favor of greater scrutiny of Chinese companies.
«The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time,» Treasury spokeswoman Monica Crowley said in a statement, without providing any specific comments on policy. «We welcome investments in the United States.»
The Treasury's comments follow a wave of western media reports claiming that the Trump administration was in talks to consider various options to reduce U.S. investments in Chinese companies.
Trump Tricks
According to a «Bloomberg» report citing three anonymous sources, these options include: delisting Chinese companies; limiting American government pension funds’ exposure to the Chinese market; and capping the share of Chinese companies in indices managed by U.S. firms.
The report added that the exact mechanisms to enact the said outcomes have yet to be identified and the overall plan to subject to approval by U.S. President Donald Trump. The discussions are already approved by Trump but no exchanges have been made with Chinese authorities and it is believed the U.S. wants to isolate this issue from broader trade negotiations.
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