Precise Investors

Friday, August 12, 2022
Stocks & Shares

U.S. stock markets may not be “gold rush” for Chinese firms

stock markets

U.S. stock markets have been “a gold rush” for Chinese companies, but this may come to an end, according to the Daily Telegraph

U.S. stock markets have been “a gold rush” for Chinese companies, but this may come to an end, as the U.S. administration has used its market as a “potential new front in a battle with China,” the British newspaper Daily Telegraph has reported.

In May, the U.S. Senate passed the Holding Foreign Companies Accountable Act, demanding extra information disclosure from foreign public companies in the U.S. market.

While seemingly neutral in scope, the laws are clearly targeted at China, reported the Daily Telegraph on July 18.

Around 245 Chinese companies have gone public in the United States since 1992, and 171 of which have been listed in U.S. stocks in the last 10 years and 15 in 2020, Jay Ritter, a professor at the Warrington College of Business at the University of Florida, was cited by the British media as saying.

The U.S. move is “largely political at this point. It can probably be used as a bargaining chip in the trade talks,” Alan Seem, a Silicon Valley lawyer at Jones Day, was quoted by the Telegraph as saying.

Every agency of the U.S. government is looking for whatever steps it can take to appear to be putting penalties on China or Chinese companies or Chinese individuals, said Nicholas Lardy, a senior fellow at Washington D.C.-based think tank the Peterson Institute for International Economics.

It’s not like these (Chinese) companies are going to collapse if they don’t have access to the U.S. market, said Lardy, mentioning that the main victims will be U.S. investors.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply