Kane Dane
The US isn’t planning to blacklist Chinese companies from trading on US stock markets, as reported by a Department of the Treasury statement. Rumblings of a potential jolt came on Friday and sent shivers throughout the markets.
“The [US] Administration isn’t contemplating blocking Chinese companies from listing shares on US stock exchanges in this moment,” the US Treasury said in a statement, posted by spokeswoman Monica Crowley on her Twitter on Sunday. The statement added that the Treasury”welcome[s] investment in the United States.”
According to media reports on Friday, the White House was Considering the possibility of limiting capital flows into China by limiting Chinese firms from trading on US stock exchanges. Reuters, for instance, reported that, citing a source within the government. The transfer, if accepted, would have resulted in a radical escalation of already tense trade relations between the US and China.
The report, initially posted By Bloomberg, also rattled financial markets on Friday, delivering the US benchmark S&P 500 index SPX down 0.53 percent and the Dow DJIA 0.26 percent reduced, in midday trading. Chinese internet giants recorded from the US were hit harder, though, together with Alibaba BABA decreasing a whole 5 percentage and Baidu BIDU almost 4 percent.
China’s currency the yuan fell by 0.4 percent against the US dollar, to its weakest against the greenback in nearly three weeks.
The News comes at a sensitive period for US-China connections, as both Nations get ready for a potential resolution of the months-long trade Dispute in discussions set to be held in Washington on October 10, with the Chinese delegation to be headed by Vice Premier Liu He.
