Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

Chinese ADR Delisting Risks Intensify with 66% Probability, $2.5 Trillion Sell-Off Possible

U.S.–China financial decoupling looms as Treasury signals 'everything's on the table,' leaving investors and non-dual-listed firms exposed.

Image
A woman walks along Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., April 9, 2025. REUTERS/Kylie Cooper/File Photo
Image

Overview

  • Goldman Sachs projects a 66% probability of forced delisting for over 100 Chinese ADRs, including Alibaba and JD.com, valued collectively at $1 trillion.
  • U.S. retail and institutional investors hold $1.2 trillion in Chinese equities, with $370 billion in ADRs and $830 billion across H shares and A shares.
  • Treasury Secretary Scott Bessent's statement that 'everything's on the table' has heightened fears of a financial decoupling between the U.S. and China.
  • Non-dual-listed firms like PDD Holdings and Full Truck Alliance face the greatest risks, as conversion to Hong Kong-listed shares could strain liquidity and valuations.
  • A full financial decoupling could trigger $2.5 trillion in cross-border sell-offs, impacting ETFs, derivatives, and global market stability.