Chinese stocks listed on U.S. exchanges declined in price considerably last week due to worries over the Fed’s aggressive interest rate increases and the potential delisting of such ADRs from the New York Stock exchange and Nasdaq. This month, the Fed delivered its first interest rate increase of 25 basis points and indicated that it intended to administer multiple increases this year.
Furthermore, the Biden Administration recently announced its intention to deter China from aiding sanctions-hit Russia and refrain from taking advantage of economic opportunities created by sanctions. The United States extended a warning that it might enforce export controls on China as a response, worsening the already strained relationship between the two countries.
