China stock listings on Wall Street accelerate under Trump

China stock listings on Wall Street accelerate under Trump

The number of Chinese groups listing their shares in the US has grown faster under the Trump administration than during that of predecessor Barack Obama, despite moves to decouple the two economies.

Since Donald Trump assumed the presidency almost four years ago, 102 Chinese companies have debuted on the New York Stock Exchange and Nasdaq, raising $25.5bn, according to data from research firm Dealogic.

That nearly equals the 105 initial public offerings of Chinese companies held in the US during Mr Obama’s eight years in office, which raised a total of $41bn thanks in part to the blockbuster $25bn listing of ecommerce group Alibaba in 2014.

The Trump administration has threatened to delist Chinese companies that trade on Wall Street if they do not provide US regulators with full access to their audit reports, a practice forbidden by Beijing.

New York-listed Chinese groups have also been the subject of scandals, such as beverage chain Luckin Coffee, which was delisted by Nasdaq after admitting to fabricating hundreds of millions of dollars in sales.

Despite that, the number of Chinese companies listed in the US rose by more than a quarter over the past year to almost 220 as of the start of October, according to a report from the United States-China Economic and Security Review Commission. The total market capitalisation of US-listed Chinese shares has almost doubled over the same period to $2.2tn, the commission said.

Investors say US capital markets continue to offer better analyst coverage especially for technology companies, as well as deeper liquidity and higher trading turnover.