One day after it rocked markets with a report that the US Treasury was preparing to impose quasi capital controls on China, by limiting US investors portfolio flows into China and limiting the listing of Chinese corporations on US exchanges, news which sent the S&P sharply lower and hammered US-listed Chinese companies such as Alibaba and Baidu, Bloomberg is now refuting its own scoop with a report that a U.S. Treasury official said there are no current plans to stop Chinese companies from listing on U.S. exchanges.
"The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time," Treasury spokeswoman Monica Crowley told Bloomberg in an emailed statement on Saturday, responding to Bloomberg's report on various measures under consideration by the U.S., "Including delisting Chinese companies from U.S. exchanges."
That said, Crowley's statement didn't address or rule out any all of the proposed "Capital-controlling" measures, including limiting US investors' exposure to the Chinese market through government pension funds, and ways to put caps on the Chinese companies included in stock indexes managed by U.S. firms.
Such as Arkera global macro strategist Viraj Patel, noted that "Potentially delisting Chinese companies from US stock exchanges is a roundabout way of capital controls that could impact US inward portfolio flows and the US dollar. All other $USD weakening tools haven't worked. Trump now looking to bring out the heavy artillery...".
As so often happens, Bloomberg's initial report of the proposed Chinese listing block appears to have been another miscommunication-cum-trial balloon launched by the more hawkish elements around Trump, pressing for escalation in the trade war; however following the market drop, the more moderate elements were forced to walk it back.
Some advocates of a crackdown on financial flows within the administration- who argue that any U.S. investment in Chinese companies, whether they're listed in the U.S. or China, exposes investors to potential fraud as a result of poor Chinese corporate governance standards - said they saw the fact the discussions were being leaked as an effort by doves inside the White House to kill the effort by stirring up opposition.
As a reminder, last Friday, stocks tumbled following news that a Chinese delegation had canceled a trip to Montana and Nebraska, which initially had a cooling effect on trade deal "Optimism", only for the report to be rejected and helping stocks spike on Monday.
https://www.zerohedge.com/markets/us-treasury-denies-it-plans-block-chinese-listings-us-exchanges
"The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time," Treasury spokeswoman Monica Crowley told Bloomberg in an emailed statement on Saturday, responding to Bloomberg's report on various measures under consideration by the U.S., "Including delisting Chinese companies from U.S. exchanges."
That said, Crowley's statement didn't address or rule out any all of the proposed "Capital-controlling" measures, including limiting US investors' exposure to the Chinese market through government pension funds, and ways to put caps on the Chinese companies included in stock indexes managed by U.S. firms.
Such as Arkera global macro strategist Viraj Patel, noted that "Potentially delisting Chinese companies from US stock exchanges is a roundabout way of capital controls that could impact US inward portfolio flows and the US dollar. All other $USD weakening tools haven't worked. Trump now looking to bring out the heavy artillery...".
As so often happens, Bloomberg's initial report of the proposed Chinese listing block appears to have been another miscommunication-cum-trial balloon launched by the more hawkish elements around Trump, pressing for escalation in the trade war; however following the market drop, the more moderate elements were forced to walk it back.
Some advocates of a crackdown on financial flows within the administration- who argue that any U.S. investment in Chinese companies, whether they're listed in the U.S. or China, exposes investors to potential fraud as a result of poor Chinese corporate governance standards - said they saw the fact the discussions were being leaked as an effort by doves inside the White House to kill the effort by stirring up opposition.
As a reminder, last Friday, stocks tumbled following news that a Chinese delegation had canceled a trip to Montana and Nebraska, which initially had a cooling effect on trade deal "Optimism", only for the report to be rejected and helping stocks spike on Monday.
https://www.zerohedge.com/markets/us-treasury-denies-it-plans-block-chinese-listings-us-exchanges
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