Latest news with #financialdecoupling
South China Morning Post
17-05-2025
- Business
- South China Morning Post
Hong Kong prepares for a grand homecoming as mainland firms face US delisting threats
In the second instalment of a three-part series on financial decoupling between China and the US, experts tell the Post how pressure on US-listed companies from the mainland could be a windfall for Hong Kong's markets. Read the first part here A month ago, Patrick Tsang, the CEO of Deloitte China, learned that the US government had declined to rule out the possibility that Washington could delist Chinese stocks from American exchanges. For Tsang, a long-time accountant who is also a member of Chief Executive John Lee Ka-chiu's policy unit, the delisting threat seemed like a golden opportunity for Hong Kong. Around 286 mainland companies trading in the US came under threat of delisting after Treasury Secretary Scott Bessent said in early April that 'everything's on the table', as worries about decoupling emerged amid a US-China tariff war. Tsang immediately rounded up a capital markets team at Deloitte to produce proposals on how Hong Kong could prepare for the situation. Last week, he submitted a paper to the Chief Executive's Policy Unit, outlining four major strategies to bolster Hong Kong's financial preparedness, including simplifying listing procedures and finding funding for these companies.
South China Morning Post
10-05-2025
- Business
- South China Morning Post
America and China's financial decoupling
America and China's financial decoupling Despite their political differences, China and the US are deeply financially entwined. This series looks at attempts by the nations to decouple their finances, and the resulting fallout.
South China Morning Post
10-05-2025
- Business
- South China Morning Post
US-China financial ties face growing strains as trust erodes amid trade tensions
In the first of a three-part series on financial decoupling between China and the US, experts say the economies of the world's two biggest countries are highly intertwined and pulling apart would inflict pain equally on both sides. Advertisement What a difference five years makes. When one of China's largest cloud services providers raised US$240 million from a stock offering last month, its underwriters had to contend with two rules that did not exist when Kingsoft Cloud Holdings listed in the US in May 2020. The first was the Outbound Investment Rule that came into effect on January 2 in the waning days of the Biden administration, imposing restrictions on American investments in China-linked companies on national security grounds. The second was the America First Investment Policy , announced by President Donald Trump on February 21, which further tightened Biden's rules. Together, they added another step to Kingsoft's fundraising in the US and Hong Kong. The rules apply to any Chinese company engaging in overseas securities financing that could potentially sell to American investors. 'Mutual trust between the two sides has significantly declined,' said Chen Zhiwu, chair professor of finance at the University of Hong Kong. 'Once trust is lost, financial relations are particularly vulnerable, as finance relies heavily on commitments across time. Without trust, there can be no sustainable finance.' The threat of delisting from US exchanges looms large on nearly 300 Chinese firms. Photo: EPA-EFE The world's two largest economies, long intertwined across sectors from trade to finance, have been driven further apart since Trump returned to the White House in January, imposing tariffs on America's trading partners and upending the global trade order. China has borne the brunt of Trump's tariffs , with goods from China penalised with levies of as much as 145 per cent.
