US considering delisting Chinese stocks
Posted: Thu Apr 10, 2025 3:18 pm
"President Donald Trump is reportedly looking into possibly delisting Chinese public companies from US exchanges, per Fox News".
I had a bit of a panic because I own some IEMG, but then I read this:
"The iShares Core MSCI Emerging Markets ETF (IEMG) is a U.S.-domiciled fund that trades on U.S. exchanges, but when it comes to acquiring its underlying holdings—including Chinese stocks—it does not rely on U.S.-based exchanges. Instead, it purchases the securities on their native markets, such as the Hong Kong Stock Exchange (HKEX) and potentially the Shanghai or Shenzhen exchanges, depending on which venue the underlying stocks are primarily listed on. This approach allows the ETF to directly mirror the performance of its benchmark index, which includes stocks as traded in their local markets.
While some Chinese companies are available as American Depositary Receipts (ADRs) on U.S. exchanges, IEMG’s portfolio construction typically involves buying the actual underlying securities where they trade natively. This ensures that the fund accurately reflects local pricing, liquidity, and market dynamics rather than relying on the sometimes more complex or less direct ADR structures."
But China would retaliate by dumping Treasuries on long term Treasury auction days. It would cause a Liz Truss lettuce event, possibly the fiscal "heart attack" Ray Dalio recently warned about.
I had a bit of a panic because I own some IEMG, but then I read this:
"The iShares Core MSCI Emerging Markets ETF (IEMG) is a U.S.-domiciled fund that trades on U.S. exchanges, but when it comes to acquiring its underlying holdings—including Chinese stocks—it does not rely on U.S.-based exchanges. Instead, it purchases the securities on their native markets, such as the Hong Kong Stock Exchange (HKEX) and potentially the Shanghai or Shenzhen exchanges, depending on which venue the underlying stocks are primarily listed on. This approach allows the ETF to directly mirror the performance of its benchmark index, which includes stocks as traded in their local markets.
While some Chinese companies are available as American Depositary Receipts (ADRs) on U.S. exchanges, IEMG’s portfolio construction typically involves buying the actual underlying securities where they trade natively. This ensures that the fund accurately reflects local pricing, liquidity, and market dynamics rather than relying on the sometimes more complex or less direct ADR structures."
But China would retaliate by dumping Treasuries on long term Treasury auction days. It would cause a Liz Truss lettuce event, possibly the fiscal "heart attack" Ray Dalio recently warned about.
