US Senate Passes Bill To Block Chinese Firms From Listing On American Stock ExchangesUS Capitol building

The US Senate has passed legislation that could ban Chinese companies from listing shares on American exchanges.

The legislation may also ban Chinese companies from raising funds from American investors.

The bill, moved by Louisiana Republican Senator John Kennedy, on Wednesday (20 May) would require companies to certify that "they are not owned or controlled by a foreign government".

Shares of Chinese e-commerce giant Alibaba saw its US-listed shares fall more than 2 per cent on the development.

Although the law can be applied to any foreign company, lawmakers have said that the move to strengthen disclosure requirements was aimed at China.

"The Chinese Communist Party cheats, and the Holding Foreign Companies Accountable Act would stop them from cheating on US stock exchanges," Kennedy, a member of the Senate Banking Committee, said on Twitter.

"We can't let foreign threats to Americans'' retirement funds take root in our exchanges."

The passing of the bill is a reflection of the growing anger among US lawmakers towards China and its handling of the coronavirus pandemic.

The White House last week directed the federal retirement savings body to halt investments in Chinese companies which are seen as the beginning of a financial war in addition to the trade war already on between the two countries.

Labor Secretary Eugene Scalia had warned that plans to invest federal savings would place "billions of dollars in retirement savings in risky companies that pose a threat to US national security".

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement