The Dow Jones Industrial Average advanced by 100 points on Monday morning after a Treasury official said there were no immediate plans to ban Chinese companies from listing on U.S. stock exchanges.
The report along with better-than-expected economic data from China also sent the S&P 500 higher by 8 points or 0.3%, while the Nasdaq Composite gained 16 points or 0.2%.
Bloomberg News, citing Treasury spokeswoman Monica Crowley, reported that the Trump administration isn’t thinking about blocking Chinese companies at the moment.
The report comes after Bloomberg reported on Friday that the White House has been looking into ways to limit U.S. investments in China, which could include delisting of Chinese companies, thus further accelerating trade tensions between the two nations.
In retaliation, China warned of “significant repercussions for the Chinese and the U.S. economies, as well as their companies in the future.”
“On Saturday, the Treasury Department stated it’s not considering blocking Chinese companies from listing on U.S. exchanges ‘at this time,’ refuting the Bloomberg story from Friday, which caused the declines in stocks,” wrote Tom Essaye, President of the Sevens Report, in a note to clients. “So, given Treasury’s denial, we’re seeing those declines partially reversed.”
The report also shortly follows after officials from both nations met in preparations of advanced talks. The latter talks are expected to occur on October 10 to October 11 in Washington with Chinese Vice Premier Liu He representing China.