Alibaba (BABA) - Get Report and other major American depositary receipts on Friday declined after a report that the Trump administration was considering restricting U.S. investors' portfolio flows into China.
Bloomberg reported that administration officials are considering a number of steps, including delisting Chinese companies from U.S. stock exchanges and limiting U.S. investors' exposure to China through government pension funds.
These moves would be over and above the tariffs that the two countries have placed on each other's goods.
The restrictions would come, Bloomberg reported, as China has been removing limits on foreign investment in its financial markets.
President Donald Trump has approved the effort to figure out how to apply these restrictions, a person close to the deliberations told the news service.
Over the years a number of Chinese companies have been added to major stock indexes to which U.S. investors have access.
The 156 Chinese companies listed on the three largest U.S. exchanges -- Nasdaq, the New York Stock Exchange and the NYSE American -- were valued by market cap at $1.2 trillion as of late February, Bloomberg said, citing a report by the U.S.-China Economic and Security Review Commission. This agency's brief is to report to Congress on the national-security implications of the bilateral trade relationship.
In trading on Friday, Alibaba, the online marketplace, was off 5.2% at $165.98. Baidu (BIDU) - Get Report , the search-engine provider, was down 3.7% at $101.21. JD.com (JD) - Get Report , the online retailer of electronics and general merchandise, gave up 6% to $27.82.