After two decades of negotiations, the end game of the struggle between the US and China on listed companies at the NYSE and Nasdaq seems to head into a delisting of 200 listed Chinese firms. Accounting expert Paul Gillis looks back at twenty years of tug wars at Market Place. Moving home, like to the Hong Kong Exchange, might not solve the need for capital, according to Gillis. “The Hong Kong exchange has arguably less liquidity than the U.S. exchanges,” Gillis said. “The investors may find it a little more difficult to get good prices when they’re selling stock.”
The China Securities Regulatory Commission (CSRC) has proposed over Christmas rules for Chinese firms who want to apply for an IPO at overseas stock markets. But those new rules lack much-needed clarity, says financial expert Winston Wenyan Ma at CNBC. “Domestic companies need to comply with relevant provisions in the areas of foreign investment, cybersecurity and data security, a draft said, without much elaboration,” writes CNBC.
Until a few weeks ago, listing at US stock markets was a favorite way to raise capital for fast-growing Chinese companies. That venue is closed now, and VC veteran William Bao Bean sees still bears on the road for on-shore listing’s at China’s stock markets, he tells the South China Morning Post.
Former US President Donald Trump tried to derail relations with China by banning stocks from Chinese companies at US stock markets. Now, under President Joe Biden, certainty for stock markets including the Chinese shares is key, says former White House advisor Harry Broadman at US News. Although there might be some other dangers.
After the Senate also the House of Representatives approved this week the bill to ban Chinese companies at US stock markets, the Holding Foreign Companies Accountable Act (The Kennedy Bill) if they do not allow inspections by the American PCAOB. But accountant expert Paul Gillis does not expect will materialize, he writes at his Chinaaccountingblog.
In a last-ditch effort to cross China and hinder the president-elect Biden to set his own course, US President Trump has introduced regulation to ban Chinese companies from listing at US stock markets. Accountant specialist Paul Gillis looks at the ChinaAccountingBlog at the possible effect.
Despite the trade tensions between China and the US, many tech companies from China still turn to American stock markets for their need for capital. Shanghai-based VC William Bao Bean explains why China’s markets can still not match the capital requirements of domestic companies, he tells at Emerge 2020.
US legislators might support a bill to force Chinese firms listed in the US to let the US stock regulators, the PCAOB, check their files. But those checks will not prevent frauds like those by Luckin as some US senators claim, warns audit expert Paul Gillis on his weblog Chinaaccountingblog. Some predictions on what will happen after the bill has been adopted.
China has been banning US regulators at the PCAOB from getting access to information of Chinese companies at US stock markets, as they should do according to US regulations to protect its state secrets. But things are changing, notes auditing expert Paul Gilles at his weblog Chinaaccountingblog. “I suspect that Yi’s comments are a signal that China will back down on this issue, allowing joint inspections with adequate controls to protect state secrets,” writes Gillis.