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Major U.S. investors have billions at risk in Chinese stocks

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SAN FRANCISCO (Reuters) – Major U.S. fund managers have tens of billion of {dollars} at stake in among the hottest Chinese stocks on Wall Street, exposing them to potential losses ought to the White House transfer to delist Chinese corporations from U.S. exchanges.

FILE PHOTO: Traders work on the ground at the New York Stock Exchange (NYSE) in New York, U.S., September 12, 2019. REUTERS/Brendan McDermid/File Photo

White House commerce adviser Peter Navarro on Monday dismissed stories that the Trump administration was contemplating delisting Chinese corporations from U.S. inventory exchanges as “fake news,” serving to Chinese stocks together with JD.com (JD.O) and Alibaba Group Holding (BABA.N) recuperate a few of their declines from Friday after the stories emerged.

(GRAPHIC: S&P/BNY Mellon China ADR index – here)

As Navarro’s feedback diminished investor fears, the S&P/BNY Mellon China Select ADR index .BKTCN rose 1.1% after tumbling greater than 3% on Friday. Still, the potential of a future U.S. transfer as well Chinese corporations out of U.S. markets stays a subject of concern for investors.

“The proposed measures would completely undermine the international ADR/GDR etc. market and would harm the US’s role as a conduit for international capital,” Jefferies fairness strategist Sean Darby wrote in a consumer be aware.

Leading U.S. investors throughout Chinese corporations listed on U.S. exchanges embrace Blackrock, T. Rowe Price Associates and the Vanguard Group, with over $40 billion invested, in accordance with Refinitiv information, based mostly on fund filings.

(GRAPHIC: Top U.S. investors in Chinese corporations listed in the U.S. – here)

After Monday, Chinese markets will likely be closed for a week-long vacation marking the 70th anniversary of the founding of the People’s Republic of China. U.S.-listed shares of Chinese corporations will proceed to commerce throughout that point, exposing them to extra potential volatility.

The graphics beneath present main U.S. investors’ exposures to 4 main Chinese corporations common on Wall Street, based mostly on Refinitiv information.

(GRAPHIC: Top U.S. investors in Alibaba – here)

(GRAPHIC: Top U.S. investors in Baidu – here)

(GRAPHIC: Top U.S. investors in JD.com – here)

(GRAPHIC: Top U.S. investors in Tencent – here)

Reporting by Noel Randewich; Editing by Megan Davies and Sandra Maler


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