Forefront Communications

Reuters: Delisting Chinese Firms From U.S. Equities Would Drive Business Elsewhere: NYSE Head

Forefront Communications

Forefront Communications

From the STA Conference in Washington, DC—Forcing Chinese companies to delist from U.S. equities markets offers no protection for U.S. investors but it would prompt the firms to take their business elsewhere, the head of the New York Stock Exchange said on Thursday.

“It wouldn’t mean that U.S. investors would be protected if that happened,” said Stacey Cunningham, president of Intercontinental Exchange Inc-owned NYSE. “It just would mean other markets would be attracting more listings.”

“That would mean Alibaba and all of these other large companies couldn’t come to the U.S. anymore, and so we’ve been lobbying to solve the problem instead of just legislating companies away,” Cunningham said at a Security Traders Association conference in Washington.

Last Friday, sources said the Trump administration was considering delisting Chinese companies from U.S. stock exchanges. The move would be part a broader effort to limit U.S. investment in Chinese companies, the sources said, citing growing security concerns about the companies.

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