Chinese companies that list on American stock exchanges may be de-listed and American investment in China limited if a drastic plan being discussed by the Trump administration is put into action.
Bloomberg News reported that internal discussions are being held on the issue, but no imminent action is expected. The two countries are locked in a tariff war and have been trying to set up new negotiations on trade reciprocity.
US-listed shares of Alibaba Group Holding Ltd, Baidu Inc and JD.com Inc were down between 1.2% and 3.6% on the news.
The US Treasury Department unveiled new regulations last week on how the Foreign Investment Risk Review Modernization Act, will prevent foreign firms from using investment vehicles like minority stakes to obtain American information.
For the film industry, China is the top international box office, with roughly $8 billion in ticket sales. The country has been rapidly adding theaters, and any new push to restrict investment could have an impact.
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