The transition to vigorous action against the Chinese economy has been outlined not only in the field of new US export control rules. The legislative initiative implies the exclusion from the quotation lists of American stock exchanges of shares of those Chinese companies that did not bring the accounting system in line with American standards.
Moreover, according to Business Insider, an alliance of two US senators from different parties is promoting a law under which exchanges in the United States will be forced to leave the shares of companies controlled by other governments. Even such a general formulation in the context of the confrontation between the United States and China allows us to understand that the primary target of this initiative is the shares of large Chinese companies such as Alibaba and Baidu.
For Chinese technology giants, the possibility of rotation on US stock exchanges provides access to additional sources of capital, and US lawmakers are trying to block the corresponding financial flows. One of the authors of the initiative, Senator John Kennedy, said: “We cannot allow the sources of threats to US pension funds to take root on our stock exchanges.”
Another author of the initiative, Senator Chris Van Hollen, added in an interview with Yahoo Finance: “We just want Chinese companies to play by the same rules as everyone else. This is an important step towards transparency. ” Last week, US authorities ordered the Federal Pension Fund to stop investing in the assets of Chinese companies. The delisting initiative of Chinese companies must be approved by the US Congress and approved by the country’s president before it becomes a law in force.