US-China Decoupling: Goldman Sachs Warns of $2.5 Trillion Economic Cost
Goldman Sachs estimates a complete decoupling of US and Chinese capital markets could trigger a US$2.5 trillion sell-off, with US investors offloading nearly US$800 billion in Chinese equities and China divesting US$1.7 trillion in US Treasuries and equities. This scenario assumes US regulatory restrictions on Chinese investments. The potential delisting of US-traded Chinese companies, fueled by escalating trade tensions, is the primary catalyst for this projected market disruption. Such a move would impact approximately 300 Chinese firms listed on US exchanges.
John Q. Hosedrinker