Goldman Sachs warned a full-blown financial split between the US and China could force American investors to offload more than $800 billion in Chinese equities, Bloomberg News reported Thursday.

This includes $250 billion in American depositary receipts, $522 billion in Hong Kong stocks, and a 0.5% of onshore equities, according to the report. The estimate comes as tensions flare, with US Treasury Secretary Scott Bessent hinting that all options are "on the table" in trade talks.

Goldman Sachs cautioned that forced delistings could spark a 9% drop in ADR valuations and 4% in MSCI China, Bloomberg wrote.

Passive funds like the KraneShares CSI China Internet ETF, which is heavily exposed to ADRs, could face major hits, Goldman Sachs noted, adding that Chinese investors might also unwind $1.7 trillion in US assets, including $370 billion in stocks, according to the report.

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