The Senate passed legislation that would increase oversight of Chinese companies trading in American markets and could lead to them being booted from United States financial exchanges, according to reports.
The vote on the measure, introduced more than a year ago by Sen. The Invesco China Technology ETF, which offers exposure to a basket of popular Chinese technology firms that are listed in the US, including the American Depositary Receipts of Baidu Inc., was down 0.7%; those for KraneShares CSI China Internet ETF, which offers exposure to Alibaba Group Holding Ltd. and JD.com, was trading 1.4% lower, at last check, according to MarketWatch's website. "It's not limited to the USA, so we aren't that anxious that pressure from the USA government will cause irreparable damage to the company's business", said Li. The internet search giant is discussing internally relisting in other areas including Hong Kong.
The airline sector and support companies like Melrose Industries and Rolls Royce are slowly beginning to dig themselves out of the corona-induced slump and although they have a long way to go before returning to price levels before March, each day brings some positive news.
Baidu - with a current market cap in excess of $36 billion - reportedly thinks it is undervalued on the Nasdaq exchange. The shares of e-commerce major Alibaba fell over 2 per cent.
Invesco China Technology ETF (NYSEArca: CQQQ): CQQQ is based on the AlphaShares China Technology Index, which is created to measure the performance of the investable universe of publicly-traded information technology companies open to foreign investment that are based in mainland China, Hong Kong or Macau.
So far, no companion measure has been introduced in the House of Representatives, according to a Senate aide familiar with the bill.
"China is on a glidepath to dominance and is cheating at every turn".
Recently, the Thrift Saving Plan, a retirement fund for US federal workers and military members, postponed plans to invest in some Chinese stocks under pressure from Donald Trump's White House.
Companies that fail to comply with the PCAOB's rules for three consecutive years will additionally be forced to de-list from U.S. exchanges under the bill. Nasdaq this week moved to delist Luckin Coffee.
It would require U.S. authorities to strictly check foreign firms to see if they are controlled by foreign governments.
A bill that could force Chinese companies to give up their listings on American stock exchanges is now moving at "warp speed" in Congress, one analyst says.
Chinese companies can still circumvent the problem by turning to worldwide accounting firms for auditing and inspections so that they conform with U.S. government regulations, said Dong.
Van Hollen said: "We just want Chinese companies to play by the same rules as everybody else". This is an important step forward for transparency...
"I do not want to get into a new Cold War", Kennedy said on the Senate floor.
"I was proud to work with Senator Kennedy on this important legislation that would protect American retail investors and pensioners from risky investments in fraudulent, opaque Chinese companies that are listed on US exchanges and trade on over-the-counter markets", Rubio said in a statement. "We expect the debate to remain among the top topics of the 2020 USA presidential election".
"For too long, Chinese companies have disregarded U.S. reporting standards, misleading our investors".