U.S.-listed China shares rise as investors shrug off delisting reports (updated)

China Automotive Systems

30/09/2019 16:51

* White House trade adviser says reports "fake news"
    * Alibaba, JD.Com rise 2% 
    * China Automotive, NetEase among biggest gainers

 (Adds comments, details)
    Sept 30 (Reuters) - Shares of U.S.-listed Chinese stocks
rose on Monday, reversing from a sharp fall in the previous
session that was sparked by reports that the Trump
administration was considering delisting Chinese firms from U.S.
stock exchanges.
    Alibaba Group Holding Ltd  BABA.N  and JD.Com Inc  JD.O 
rose 2% each in early trading. They had tumbled more than 5%
after the reports said the potential moves were aimed at
limiting the flow of U.S. capital to Chinese companies.
 urn:newsml:reuters.com:*:nL2N26I0X6
    On Monday, China warned of instability in international
markets from any "decoupling" of China and the United States,
and noted a U.S. Treasury response that said there were no
immediate plans to block Chinese listings "at this time".
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    Helping sentiment further was White House trade adviser
Peter Navarro dismissing the reports as "fake news."
    "That story, which appeared in Bloomberg; I've read it far
more carefully than it was written. Over half of it was highly
inaccurate or simply flat-out false," Navarro told CNBC.
 urn:newsml:reuters.com:*:nW1N26G002
    Bloomberg did not immediately respond to a request for
comment.
    Index providers MSCI Inc  MSCI.N  and S&P Global Inc
 SPGI.N  were up 1% and 0.2%, respectively. The companies, which
have increased their exposure to Chinese shares in recent years,
had fallen over 3% each on Friday.
    "Implementing (a delisting) would be a very massive
undertaking and extremely challenging, so the reaction we saw on
Friday was quite exaggerated," said Randy Frederick, vice
president of trading and derivatives for Charles Schwab in
Austin, Texas. 
    Shares of China Automotive  CAAS.O  and NetEase Inc  NTES.O 
were the biggest gainers among U.S.-listed Chinese stocks. 
    Video game-streaming company Huya  HUYA , online financial
companies Qudian Inc  QD.N  and PPDAI Group Inc  PPDF.N  and
chat app maker Momo Inc  MOMO.O  also rose marginally.

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780;))