A severe tightening of Chinese firms is taking shape in the U.S: is #Washington planning to catch two birds π¦ π¦ with one stone β
More than 80 U.S.-listed Chinese #stocks, including JD.com and #Pinduoduo, have been included in a new list of pre-delisting (i.e., forced exit from the exchange), with a total of 105 #Chinese stocks on the list.
Some #analysts have argued that if all #Chinese #stocks on the list were forced to #delist, the #growth rate of #China's #foreignexchange #reserves would be significantly affected π
That's deeply tied to the ability of the #HongKong market to raise funds after the National Security Act, which restricted its #freedom, is not equal to before, and it will be difficult to replace the delisting of Chinese #technology stocks in the United States with other #funds.
U.S. Secretary of State #Blinken had originally planned to give a speech on Thursday (May 5), U.S. time, to announce the U.S. government's new plan to deal with #China, but Blinken's speech was delayed due to the coronavirus diagnosis.
However, the #UnitedStates continued to take action against #China. The delisting list already existed, but it only contained 45 companies, but now there are 125 - and they will have until May 25 to file counterclaims.
According to the #Foreign Company Accountability #Act (#HFCAA) passed by the U.S. #Congress in December 2020, companies listed in the U.S. are required to open the company accounting information to the relevant U.S. auditing agencies.
If #companies on the list, refuse the #audit #requirements for three consecutive years they will run the risk of being #delisted, and this also applies to newly listed companies.
In this regard,#Chinese Foreign Ministry spokesman #ZhaoLijian said that Chinese #securities regulators have been communicating with the relevant U.S. departments.
For #China, delisting is not obvious and will depend on the results of the US-China talks π¨οΈ
For #China, delisting is not obvious and will depend on the results of the US-China talks π¨οΈ
These facts show an increased US #interest in controlling #capital going to China from the #US and #Beijing's penetration of North #American #financial #markets.
It is also a way to put pressure on #Beijing at a time of tension with #Russia, where #China's position can be very important.
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