(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.
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”.
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.
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.
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila
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