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The threat to kick China out of U.S. exchanges is growing, and Hong Kong stands to benefit

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Those exposed to Chinese ADRs—whether it’s a CEO of a U.S.-listed Chinese company, or an equity strategist dealing with the China market—are now all considering one question: Is the U.S. really going to kick Chinese companies off its stock exchanges?

Some of China’s largest companies trade in the U.S., including JD.com (No. 47 on the Fortune Global 500), Alibaba (No. 70) and PDD Holdings (No. 442). But these giants and many much smaller companies could have their existence as U.S.-traded companies threatened by a revived trade war against Beijing launched by U.S. President Donald Trump. 

Last week, several Republican members of Congress, including Representative John Moolenaar, chair of the House Select Committee on the Chinese Communist Party, wrote recently appointed Securities and Exchange Commission Chair Paul Atkins to “express grave concern over the continued presence of Chinese companies on U.S. stock exchanges.” 

In a letter reported by the Financial Times, the lawmakers pointed to U.S.-listed Chinese companies, large and small, from giants like Alibaba and JD.com to smaller startups like EV brand Xpeng and self-driving car provider Pony.AI.

‘Everything is on the table’

Worries over delisting have grown since late February, when Trump revived the threat of kicking Chinese companies off U.S. exchanges in his “America First Investment Plan.” In his memo, Trump ordered officials to determine whether Chinese companies were upholding U.S. auditing standards and investigate the structures these firms use to list on foreign exchanges. 

Since then, administration officials have declined to rule out taking action against U.S.-listed Chinese companies, with Treasury Secretary Scott Bessent noting in a mid-April TV interview that “everything is on the table.”

“The threat is growing in a significant way,” says Sandeep Rao, a researcher at Leverage Shares. 

The NASDAQ Golden Dragon China Index, which tracks Chinese companies listed in the U.S., is down by around 7% since “Liberation Day.” By comparison, Hong Kong’s Hang Seng Tech Index, which tracks tech companies traded in the Chinese city (including some that also trade in the U.S.) is down by 4.6% over the same period. 

Chinese companies have long turned to the U.S.’s deep and liquid markets to raise capital. Alibaba’s IPO on the New York Stock Exchange in 2014 raised $25 billion, the world’s largest IPO at the time, and only superseded by Saudi Aramco’s 2019 listing in Riyadh. 

As of the end of March, 286 Chinese companies are listed on U.S. exchanges, with a total market value of $1.1 trillion, according to exchange data cited by the South China Morning Post

Yet U.S. investors have grumbled about poor auditing standards among Chinese companies. Technically, companies listed in the U.S. need to open their books to U.S. regulators, but Chinese officials often bar such access citing national security. The revelation in 2020 that Chinese coffee chain Luckin Coffee had inflated its sales was the last straw for Congress, which passed the Holding Foreign Companies Accountable Act that ordered Chinese companies to grant access to U.S. regulators or risk getting thrown off U.S. exchanges.

After years of negotiations, China in 2022 agreed to let U.S. regulators review auditing documents in the Chinese city of Hong Kong, lifting the delisting threat and calming investors.

Still, the damage had already been done, as U.S.-listed Chinese companies began to explore secondary listings in Hong Kong. Last year, Alibaba upgraded its Hong Kong listing to a primary listing, allowing the Chinese e-commerce company to tap mainland Chinese investors through the city’s Southbound Connect scheme.

Some investors “have been shifting over from holding the U.S. ticker to the Hong Kong ticker because of the delisting threat,” Rao says.

Hong Kong might be a winner

In mid-April, Goldman Sachs estimated that U.S. institutional investors hold about $830 billion worth of shares in Chinese companies, spread across the mainland Chinese, Hong Kong, and U.S. markets. About $250 billion of that is in Chinese ADRs.

Still, “holdings of equities by foreigners, particularly U.S. holders, have come down meaningfully versus where we were five years ago,” Cameron Chui, Asia equity strategist for JPMorgan Private Bank, said during a Wednesday briefing to reporters when asked the possibility of delistings. “The risk has definitely been meaningfully reduced.”

Rao notes that U.S. investors might still be able to keep trading in Chinese companies even if they do get delisted—it would just be in the less protected OTC market. Tencent, one of China’s largest tech companies, has its main listing in Hong Kong, but also trades in the U.S. OTC market. 

Meanwhile, Chinese companies are already murmuring about other options. In a conversation with reporters on the sidelines of the Shanghai Auto Show, Pony.ai CEO James Peng said a secondary listing in Hong Kong was possible, though affirmed the startup was focusing on releasing its next generation of vehicles.

Geely Auto is also taking its U.S.-listed EV brand Zeekr private, just one year after its New York IPO, to streamline the Chinese auto giant’s operations and improve profitability. 

In its mid-April report, Goldman Sachs highlighted 27 U.S.-listed Chinese companies that will likely be eligible for a Hong Kong listing (whether a secondary or primary listing), including PDD, retail stock trading platform Futu, and digital logistics platform Full Truck Alliance. 

But some Chinese companies are braving geopolitics to pursue a U.S. listing. Chagee, a Chinese tea chain, raised $411 million in a U.S. IPO, debuting on the Nasdaq on April 17. 

Hong Kong looks like a more attractive—or, at least, a less bad—place to trade shares. A primary listing in the city opens up the possibility of mainland Chinese investors trading the company’s shares. Southbound flows (i.e. from mainland China into Hong Kong) have surged in recent months, as mainland Chinese investors barrel into the AI boom represented by companies like Alibaba and Semiconductor International Manufacturing Corporation

“It’s quite sensible to have, at the very least, a secondary listing in Hong Kong if you’re a U.S.-listed Chinese company,” Rao says. 

The city is going through an IPO revival, as mainland Chinese companies now hope to tap global capital through an “overseas” listing. Last November, a $4 billion IPO by Midea, the world’s largest maker of home appliances, kicked things off; Mixue, an ice-cream chain with more outlets than McDonald’s, followed in March.

Hong Kong is expecting at least two more blockbuster IPOs in the coming months. CATL, the main supplier of batteries for Tesla, hopes to raise $5 billion in Hong Kong in the near future. (JPMorgan and Bank of America are assisting with the IPO, which has attracted congressional scrutiny.) Chinese automaker Chery Auto is also gearing up for a Hong Kong listing to raise $1.5 billion. 

But Hong Kong isn’t a perfect replacement for New York. “There are no positives from this. Liquidity in Hong Kong is not the same as in the U.S.,” Chui said on Wednesday.

This story was originally featured on Fortune.com



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Hero bystander who tackled Bondi gunman praised by Trump, Ackman

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A bystander who rushed and disarmed one of the Bondi Beach attackers has won praise from leaders around the world, including US President Donald Trump and hedge fund billionaire Bill Ackman, who announced a reward program for community heroes.

Extraordinary footage of the civilian’s actions began circulating on social media on Sunday, shortly after two men, later identified as a father and son, started shooting into a crowd gathered to celebrate the first day of Hanukkah. The massacre has left at least 16 people dead in the worst terrorist attack in Australia’s history. 

Read More: Sixteen People Killed in Bondi Beach Hanukkah Terror Attack 

In the mobile-phone video, which has not been verified by Bloomberg News, one of the attackers is standing near a tree and firing. A few meters away, a crouched man emerges from behind a parked car. He grabs the shooter from behind and wrestles the weapon from his hands. Local media named the bystander as Ahmed el Ahmed, a 43-year-old father-of-two from south Sydney. He was shot twice and is being treated in the hospital, according to reports.

He was also soon lauded for his feat. Trump said at the White House that Ahmed had saved many lives and expressed “great respect” for him. In Sydney, New South Wales Premier Chris Minns went further, describing Ahmed’s wrestle with the shooter as “the most unbelievable scene I’ve ever seen.”

“That man is a genuine hero and I’ve got no doubt there are many, many people alive tonight as a result of his bravery,” Minns said at a press conference late Sunday.

Australian Prime Minister Anthony Albanese also praised Ahmed, and other bystanders who helped treat victims in the immediate aftermath of the shooting. 

“People rushing towards danger to show the best of the Australian character,” Albanese told reporters Monday. “That’s who we are, people who stand up for our values.” 

Pershing Square Capital Management’s founder Ackman called Ahmed  “a brave hero” and said his hedge fund firm would establish a reward program for people who had carried out similar acts.

The top donor to a gofundme page set up for the “hero” who tackled the shooter is listed as William Ackman, who gave $99,999. More than $170,000 has been raised so far. 

Salesforce Inc. Founder and Chief Executive Officer Marc Benioff also expressed his gratitude for Ahmed in a post on X.



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A ‘new era’ in the housing market is about to begin as affordability finally improves

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Next year should mark a shift in the housing market after years of largely being frozen in place, according to Mike Simonsen, chief economist at top residential real estate brokerage Compass.

Home sales flatlined amid unaffordable conditions after rising demand collided with tepid supply growth, pushing up home prices. Would-be buyers became so discouraged that demand cooled and remains slow.

Prices are now becoming more favorable for house hunters, a trend that should continue in 2026 and change the narrative in the housing market.

“In the next era, that story flips. So sales are starting to move higher, but prices are capped or maybe down. Incomes are rising faster than prices, and so affordability improves for the first time in a bunch of years,” Simonsen told CNBC on Friday. “It’s not a dramatic improvement, but it’s the start of the new era.” 

His view echoes a recent report from Redfin, which also cited stronger income and weaker homes prices as it predicted a “Great Housing Reset” in 2026.

In addition to potential buyers giving up on finding an affordable home, sellers have been giving up on finding someone willing to buy at the price they want.

As a result, the number of homes that were withdrawn from the market jumped this year. In June, these so-called delistings shot up 47% from a year earlier.

Simonsen said listing withdrawals tend to be owner-occupied homes, meaning they could be latent demand as well as supply. That’s because two transactions would be needed: owners want to buy a new home but must sell their current one.

“In an environment where conditions improve a little bit, we actually estimate that that’s a representation of shadow demand—people that want to move, people that have delayed moves for maybe four years now,” he said, adding that there are about 150,000 such homeowners.

His housing market outlook for a new era of improving affordability doesn’t depend on a steep drop in mortgage rates. In fact, a plunge might spur so much demand that prices would overheat.

Simonsen expects rates to stay in the low-6% range, allowing sales to grow while also keeping home prices in check as more inventory comes on the market.

The price environment is already showing auspicious signs for prospective buyers. More than half of U.S. homes have dropped in value over the last year, but homeowners can still sell with a net gain as values are up a median 67% since their home’s last sale, accordion to data from Zillow.

And a separate report fromZillow found that homebuyers are getting record-high discounts. While the typical individual discount remains $10,000, desperate sellers are increasingly offering multiple reductions as muted demand leaves homes on the market for longer. As a result, the cumulative price cut in October hit $25,000.

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement last month. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”



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Attacker who killed US troops in Syria was a recent recruit to security forces

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A man who carried out an attack in Syria that killed three U.S. citizens had joined Syria’s internal security forces as a base security guard two months earlier and was recently reassigned amid suspicions that he might be affiliated with the Islamic State group, a Syrian official told The Associated Press Sunday.

The attack Saturday in the Syrian desert near the historic city of Palmyra killed two U.S. service members and one American civilian and wounded three others. It also wounded three members of the Syrian security forces who clashed with the gunman, interior ministry spokesperson Nour al-Din al-Baba said.

Al-Baba said that Syria’s new authorities had faced shortages in security personnel and had to recruit rapidly after the unexpected success of a rebel offensive last year that intended to capture the northern city of Aleppo but ended up overthrowing the government of former President Bashar Assad.

“We were shocked that in 11 days we took all of Syria and that put a huge responsibility in front of us from the security and administration sides,” he said.

The attacker was among 5,000 members who recently joined a new division in the internal security forces formed in the desert region known as the Badiya, one of the places where remnants of the Islamic State extremist group have remained active.

Attacker had raised suspicions

Al-Baba said the internal security forces’ leadership had recently become suspicious that there was an infiltrator leaking information to IS and began evaluating all members in the Badiya area.

The probe raised suspicions last week about the man who later carried out the attack, but officials decided to continue monitoring him for a few days to try to determine if he was an active member of IS and to identify the network he was communicating with if so, al-Baba said. He did not name the attacker.

At the same time, as a “precautionary measure,” he said, the man was reassigned to guard equipment at the base at a location where he would be farther from the leadership and from any patrols by U.S.-led coalition forces.

On Saturday, the man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards, al-Baba said. The attacker was shot and killed at the scene.

Al-Baba acknowledged that the incident was “a major security breach” but said that in the year since Assad’s fall “there have been many more successes than failures” by security forces.

In the wake of the shooting, he said, the Syrian army and internal security forces “launched wide-ranging sweeps of the Badiya region” and broke up a number of alleged IS cells. The interior ministry said in a statement later that five suspects were arrested in the city of Palmyra.

A delicate partnership

The incident comes at a delicate time as the U.S. military is expanding its cooperation with Syrian security forces.

The U.S. has had forces on the ground in Syria for over a decade, with a stated mission of fighting IS, with about 900 troops present there today.

Before Assad’s ouster, Washington had no diplomatic relations with Damascus and the U.S. military did not work directly with the Syrian army. Its main partner at the time was the Kurdish-led Syrian Democratic Forces in the country’s northeast.

That has changed over the past year. Ties have warmed between the administrations of U.S. President Donald Trump and Syrian interim President Ahmad al-Sharaa, the former leader of an Islamist insurgent group Hayat Tahrir al-Sham that used to be listed by Washington as a terrorist organization.

In November, al-Sharaa became the first Syrian president to visit Washington since the country’s independence in 1946. During his visit, Syria announced its entry into the global coalition against the Islamic State, joining 89 other countries that have committed to combating the group.

U.S. officials have vowed retaliation against IS for the attack but have not publicly commented on the fact that the shooter was a member of the Syrian security forces.

Critics of the new Syrian authorities have pointed to Saturday’s attack as evidence that the security forces are deeply infiltrated by IS and are an unreliable partner.

Mouaz Moustafa, executive director of the Syrian Emergency Task Force, an advocacy group that seeks to build closer relations between Washington and Damascus, said that is unfair.

Despite both having Islamist roots, HTS and IS were enemies and often clashed over the past decade.

Among former members of HTS and allied groups, Moustafa, said, “It’s a fact that even those who carry the most fundamentalist of beliefs, the most conservative within the fighters, have a vehement hatred of ISIS.”

“The coalition between the United States and Syria is the most important partnership in the global fight against ISIS because only Syria has the expertise and experience to deal with this,” he said.

Later Sunday, Syria’s state-run news agency SANA reported that four members of the internal security forces were killed and a fifth was wounded after gunmen opened fire on them in the city of Maarat al-Numan in Idlib province.

It was not immediately clear who the gunmen were or whether the attack was linked to the Saturday’s shooting.



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