Delisting Chinese Stocks in the U.S. Won’t Sever Their Access to Global Capital

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Heard on the Street: U.S. action against Chinese companies on audit grounds likely won’t do the damage that it would have a decade ago

in the House of Representatives to approve legislation that would likely lead to the delisting of hundreds of Chinese companies trading in the U.S. is a symbolic blow to financial relations between the two countries.

But it isn’t the same sort of material blow to China Inc.’s ability to raise capital that it would have been when the subject was discussedWhen the subject reached the attention of the House financial-services committee in 2010, it was years before the launch of the two Hong Kong Stock Connect channels, which allow investors based in the city to buy stocks listed in Shanghai and Shenzhen.

The value of those A-shares held by foreigners has risen to new records repeatedly this year. As of the end of November, the figure reached about $354 billion, up 65% year-over-year. That’s still less than 4% of the total market, leaving considerable room to grow. There is very little indication that companies would be unduly damaged or restrained if they had to rely on Hong Kong listings. Most major Wall Street investors have outposts in Hong Kong and could easily purchase any delisted company’s secondary-listed stocks there.

 

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Me becoming christ conscious, proven..

Protection of Sec Market integrity is the intention of the measure.

It’s one of the few things government has done right. Fine if they raise capital in other world markets. But I don’t want them abusing our markets. Draw a line, make a stand, do the right thing.

anti-Marxismlist! On my opinion, the human society is running on these: 1 Technology define theoretical economic aggregate 2 Work define gross economy 3 Finance system define distribution of wealth from gross economy

Too little too late.

'Moderna, Pfizer, ce ne sont pas des vaccins, c'est de la thérapie génique' Pr Christian Perronne :

Then why Chinese govt. is so terrified of this?

Can’t wait for the next $LK Luckin ...

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