Investment bank TD Cowen has assessed a 70% likelihood that Chinese companies will be delisted from U.S. stock exchanges, citing escalating political pressure from Congress and President Donald Trump’s administration. Analysts suggest that executive action, such as an order placing firms on the U.S. government’s list of entities linked to the Chinese military, could expedite the delisting process more effectively than regulatory measures through the Securities and Exchange Commission (SEC).
This development follows a renewed push by U.S. lawmakers, including Rep. John Moolenaar and Sen. Rick Scott, who have urged the SEC to delist 25 Chinese companies, including major firms like Alibaba, Baidu, JD.com, and Weibo, due to alleged ties with the Chinese military and concerns over national security and investor risks.
The Trump administration is considering various measures to pressure China, including the potential delisting of nearly 300 Chinese companies from American stock exchanges as part of its intensifying trade strategy.
