Wall Street is going to be the next casualty in the trade war after it moved from tariffs to tech, says Beijing-based analyst Andy Mok in the New York Times. Corporate China is already preparing for a decoupling of both financial markets, he says.
The New York Times:
As the United States ramps up other barriers to trade, the outlook for the financial sector on both sides of the Pacific is starting to change, part of a broader decoupling between the two economies.
“There are growing calls on the U.S. side for complete decoupling, which is causing Chinese enterprises to re-evaluate their reliance not just on U.S. technology but also on other U.S. resources, including financial markets,” said Andy Mok, a senior fellow at the Center for China and Globalization, a leading research group in Beijing.
China has long considered Wall Street an ally…
Hong Kong, so it is not clear what role, if any, the trade war had in its considerations. Jack Ma, the co-founder of Alibaba, had said at a conference in January last year that he would consider whether to do another stock listing in Hong Kong.
For Alibaba, a Hong Kong share sale could allow more Chinese investors to put their money in a company that many of them use in their daily lives. Alibaba’s stepped-up discussions over listing in Hong Kong were reported earlier by Bloomberg.
With the trade war going on, Mr. Mok, at the Beijing research group, said Chinese companies were now more likely to think twice about depending on American financial markets.
“There is no desire on the Chinese side for decoupling,” he said, “but it is maybe a prudent management decision to reduce risk exposure.”
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