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.