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Why Trump’s threat to cut China from US capital markets makes no sense

October 04, 2019 / Anthony Rowley

US President Donald Trump has taken the wrecking ball to US-China trade and now seems to believe he can aim it at US-China finance too, going by reports that the administration is considering delisting China-based companies in New York. But in attempting such far-out swings of the ball, he risks it crashing back into his cab and destroying the wrecker.Any Trumpian move to exclude China from capital raising in US markets could well create a considerable boost in Chinese capital market activity in Hong Kong especially (if and when civil society protests there die down).This will be doubly true if the bid by Hong Kong Exchanges and Clearing to take over the London Stock Exchange succeeds creating a powerful duopoly of stock-trading and capital-raising venues and leaving New York to rue any financial wall-building it undertakes.By attempting to wreck them, Trump could scarcely have done a better job of shoring up the prospects of Chinese capital markets. But this is characteristic of his i...