The risk of Chinese companies being delisted from U.S. stock exchanges is rising sharply, according to TD Cowen. The firm estimates a 70% probability of forced removals as pressure builds from Congress and former President Donald Trump.

📌 What's Fueling the Push?

A joint letter from Rep. John Moolenaar and Sen. Rick Scott urges the SEC to take swift action, citing:

• National security concerns

• Alleged ties between Chinese firms and the military

• Lack of transparency in corporate governance

TD Cowen suggests that executive orders could accelerate the process by labeling companies under Section 1260H — banning U.S. investors from holding their shares and fast-tracking delistings.

To track disclosures from these companies, investors can monitor SEC Filings for compliance trends and regulatory red flags.

Which Companies Are in Focus?

Firms like Alibaba (NYSE: BABA) and other large-cap Chinese ADRs are at the center of scrutiny. Using the Individual Industry Classification, investors can filter listed Chinese companies by sector — particularly in tech and manufacturing, which are often flagged in national security discussions.

Bottom Line:
This isn't just headline noise. If executive action follows, it could cause swift, large-scale exits from Chinese stocks listed on U.S. exchanges.