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Countering Chinese Military Expansion

In addition to investor protection, media reports also claim that delisting plans were considered mainly to counter the growth of China’s security apparatus by reducing enablement via U.S. capital.

According to a «Reuters» report citing another anonymous source, the delistings aim to «counteract the civilian-military fusion of Chinese technology firms, the Made in China 2025 industrial development program targeting key industries for domination and a growing surveillance state in Xinjiang».

Continued Market Opening

Despite U.S. pressures, China remained committed to opening its markets reiterating its global ambitions in a recent statement from state officials.

«We will take further steps to promote high quality two-way financial opening, encourage foreign financial institutions and funds to invest in the domestic financial market, to boost the competitiveness and dynamism of the domestic financial system,» according to the summary of the eighth meeting of the Chinese State Council's Financial Stability and Development Committee.

China has been accelerating financial opening in the past two years. Steps include lifting foreign ownership caps for securities, mutual fund companies and life insurers by next year. Most recently, regulators scrapped a foreign investment quota limit, allowing qualified overseas funds to simply register before buying onshore stocks and bonds.