Trader on the floor of the New York Stock Exchange during Alibaba IPO, September 19, 2014.
Adam Jeffery | CNBC
Shares of Alibaba and other Chinese companies plunged in a sudden move after reports the White House is considering ways to limit U.S. investments in China.
Bloomberg News reported on Friday Trump administration officials are weighing delisting Chinese companies from American stock exchanges and putting a limit on U.S. government pension funds’ exposure to the Chinese market.
Alibaba shares dropped 5% on the report. Baidu and JD.com also traded lower. The iShares China Large-Cap ETF dropped 1% in a sudden move. The ETF’s biggest holdings are China Construction Bank and Tencent holdings.
The move would come as the U.S. and China are set to resume trade talks on Oct. 10 in Washington after both countries slapped billions of dollars of tariffs on each other’s goods. Delisting Chinese companies would affect billions of dollars in investment pegged to major indexes, just as the Chinese government is taking steps to increase foreign access to its markets.
A White House spokesperson declined to comment.
This is a developing story. Check back for updates.
