The US President Donald Trump is considering to ban the new listings on US exchanges and also to hinder the US pension funds to make investments in Chinese equities. The news send the US stock markets down while it is a sign of new tensions between the US and China trade talks, which should begin again in October.
The news about the topic and content were mixed in different media sources. For example according to Financial Times the sanctions would mean listings and financial investments between the countries. On the other hand, according to Reuters it was about how the Chinese companies could be delisted from the US markets.
The real content of the idea will maybe revealed later on, but the fact is that both ways would mean a dramatic change in the financial markets and its global functions. And some one could also consider if it would be possible anyhow. The financial markets regulations is not one-way street, but rather a highway or even a crossroad of high speed trains.
Big Chinese companies like Alibaba Group Holdings and JD.com both declined over 5 % after the news in New York. According to Reuters, there are 156 Chinese companies listed in Nasdaq and NYSE.