Chinese companies listed in the U.S. plummeted Friday on reports that the Trump administration is weighing curbs on new investment curbs on China.
E-commerce giant Alibaba Group Holdings Ltd tumbled 5.7% following the news after flat trading in the morning. Baidu Inc. lost 4% and JD.com declined over 6%
U.S. media reported around noon that White House officials were discussing curbs on U.S. investors’ portfolio flows into China, including possibly blocking all U.S. financial investments in Chinese companies, according to Bloomberg.
The options the Trump administration is considering include delisting Chinese companies from U.S. stock exchanges and limiting Americans’ exposure to the Chinese market through government pension funds. Trump officials are also examining how the U.S. could put limits on Chinese companies included in stock indexes managed by U.S. financial institutions, Bloomberg reported, citing people familiar with the matter.
Discussions are in preliminary stages and nothing has been decided, CNBC reported.
The news came as top China and U.S. trade official are scheduled to meet Oct. 10 in Washington for a new round of negotiations to seek a truce in the trade war.