The divergence, which follows Trump’s Feb 21 directive to tighten scrutiny of pension funds’ investments into Chinese stocks, is an aberration that some analysts warn could become more common as the US president takes an increasingly hawkish stance toward China.
Donald Trump’s push to restrict US investments in China is testing what in theory should be an ironclad financial relationship — the tight link between Chinese shares trading in New York and Hong Kong.
Alibaba Group Holding’s US shares traded at an average 2.1% discount to those in Hong Kong last week — at one point reaching the widest since 2022. A similar pattern appeared for Baidu and NetEase, with their American depositary receipts trading at their cheapest against Hong Kong peers in five months.
