It's been a roller-coaster ride for investors in Chinese-listed stocks traded in America.
Most of the group rallied Monday after the White House's top trade negotiator rebutted as "fake news" reports the Trump Administration was looking for ways to delist Chinese companies from U.S. stock exchanges.
On Monday China said any such move would hurt both sides.
(SOUNDBITE) (Mandarin) CHINESE FOREIGN MINISTRY SPOKESMAN GENG SHUANG, SAYING:
"Exerting maximum pressure and even seeking the forced decoupling of China-U.S. relations will harm the interests of Chinese and American companies and people, create turmoil in financial markets, and endanger global trade and economic growth. This does not accord with the interests of the international community."
Shares of Alibaba, JD.com, and Baidu rebounded from their Friday sell-off when the reports first surfaced.
But while Chinese companies already listed may be safe, some of those looking for a U.S. IPO in the future may not.
Reuters has learned exclusively that the Nasdaq is cracking down on IPOs of small Chinese companies, according to regulatory filings, corporate executives and investment bankers.
Why? The Nasdaq has decided to limit these stock debuts because a growing number of them were raising most of the money from their IPOs from Chinese sources, not U.S. investors.
Not only that - but these debuts are so thinly traded in the U.S., they aren't attractive to the many large institutional investors the Nasdaq is looking to cater to.
This crackdown could become the latest flashpoint in escalating tensions between the United States and China over trade and technology.
A Nasdaq spokeswoman declined to comment specifically on the impact of the changes in listing rules, which were first proposed in 2018, and went into effect last month.
A source close to Nasdaq said the changes were not the result of any discussion with the White House, despite Friday's reports of a possible crackdown on Chinese listings considered by the Trump Administration.
The White House declined to comment.