Posted on 12/15/2021 3:55:17 AM PST by EBH
Chinese companies listed on Wall Street will likely to be cut off from U.S. capital markets in the next three years as tensions between Beijing and Washington persist, says one global asset management firm.
“I think for a lot of Chinese companies listed in U.S. markets, it’s essentially game over,” David Loevinger, managing director for emerging markets sovereign research at TCW Group, told CNBC Wednesday. “This is an issue that’s been hanging out there for 20 years — we haven’t been able to solve it.”
TCW Group had $265.8 billion in assets under management as of Sept. 30, 2021, according to the company’s website.
The U.S. Securities and Exchange Commission this month finalized rules to implement a law that would allow the market regulator to ban foreign companies listed in the U.S. from trading if their auditors do not comply with requests for information from American regulators.
The law was passed in 2020 after Chinese regulators repeatedly denied requests from the Public Company Accounting Oversight Board to inspect the audits of Chinese firms that list and trade in the United States.
(Excerpt) Read more at cnbc.com ...
Chinese Companies should have never been allowed on US Stock Exchanges to begin with, unless they follow the same rules as every other company, specifically with respect to Audit Requirements.
Chinese Companies are supposed to be following the same audit rules as US Companies, but none of them are and nothing has been done about it....
If a US Company refused to provide audited financial results, they would be off the exchanges quickly....
It’s hard to believe that “China Joe” Biden would stand by, and let a Chinese company be delisted. But just to be safe, China’s proxies in the U.S. should buy up a few Hunter Biden paintings.
Nothing worse than a Biden who refuses to stay bought.
You were a few minutes before me.
Let’s see… US markets cut off Chinese companies. China stops buying US Government bonds and starts selling! Who is really damaged?
The Chinese stocks will get sold in London.
Rich Americans will have market access to them, but ordinary Americans won’t.
I would never buy stock in a Communist Chinese company, but there are rich, well-informed Americans who might.
“China stops buying US Government bonds and starts selling!”
The Chinese government hates US government fiscal irresponsibility and tries to avoid holding US government debt.
It holds slightly over $1 trillion of it, or about 4% of the amount outstanding.
The long march of Chinese seeking capital from true markets has come to the fork in the road. They have taken the road less traveled and they cannot return to the path of the most trodden. They will be left to cheat only themselves in the end.
Ha, and you wondered why we are seeking higher inflation from the democratic standpoint. It is to make the return less valuable than the purchase. Rather than default or war to cancel them, we have chosen to debase the currency thus stealing the profits of the investors who are the company owners of the products which they sold. The joy ride in US markets is coming to an end.
I would prefer a one day war to cancel debts....
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