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White House Weighing Delisting Chinese Stocks

What Happened:
The Trump administration is considering delisting Chinese companies from U.S. stock exchanges as part of its efforts to limit U.S. investment in China, Bloomberg reported Sept. 27. The White House has not yet worked out exact mechanisms for such a delisting, and any plan would need President Donald Trump's approval.

Why It Matters:
News of the White House discussions immediately hit shares of Alibaba, JD.com, iQIYI and other major Chinese companies listed in the United States, as well as state-owned firms such as China Mobile and Sinopec. The White House has sought to force China to change its economic practices and remove its limits on foreign investment, which Beijing has taken steps to do. Expanding the U.S.-China economic dispute into capital markets would have repercussions beyond the tariffs levied as part of the two sides' trade war.

Background:
The White House's delisting discussions are taking place as U.S.-China trade talks are set to resume in Washington on Oct. 10, five days before the White House is scheduled to slap an additional round of tariffs on China.