Well of course that’s what they are going to do. I mean, just think about it, what is a share in a company? It’s basically an IOU from the company to you the investor.
When investors buy shares, they hand their money over to the company for these IOUs, which can be traded, which in effect creates a form of fiat money.
What happens when America de-lists already Listed Chinese companies? They effectively make those IOUs worthless.
It’s the American government that has made this unilateral decision, so good luck trying to make the company, another victim, pay you back. Even if America passes blatantly biased laws to allow investors to go after the de-listed companies for their worthless shares, well good luck getting much of any of that money back since the overwhelming majority of those Chinese companies assets are in China.
It would be tariffs all over again, with the majority of the pain being borne by ordinary American. All this would do is limit Chinese companies abilities to raise capital in the US stock markets in the future.
As such, it makes perfect sense that Chinese companies, especially those with little to no assets in the US, would rush to list and cash in while they can. If Trump does actually follow through with this idiotic idea, it would basically mean these newly listed Chinese companies would have just got shed loads of free money. They wouldn’t even need to pay out dividends.
What more, doing this would make American stock markets incredibly risky and unattractive for all other foreign companies and investors of all stripes, which will tank the American stock market and dollar as massive capital flight takes place.
If the trade war with China and tariffs was like America shooting itself in the foot, doing this would be like shooting yourself in the balls.