Daily Management Review

Chicago Stock Exchange denies rumors on Chinese government's involvement in its acquisition


11/29/2016


Chicago Stock Exchange revealed details of a deal with Chinese investors. The stock exchange will be acquired by a Chinese company, and earlier the market was boiling with rumors that the deal involves Chinese government. Trying to explain that, the organization said the country’s government do not have any relation to the transaction since this would obviously cause a loud political resonance, reports Reuters.



klip game
klip game
Information that Chinese company Chongqing Casin Enterprise Group is going to acquire one of the oldest stock exchanges in United States caused a flurry of criticism among American congressman. 46 of them expressed extreme concern with increase of China's influence on the US economy.

According to details of the deal, the Chinese authorities will not be able to control the stock exchange’s potential investors or companies involved in the process directly or indirectly. Terms of the deal also guarantee protection against a possible intervention by the authorities, told Exchange Advisor James Ongena.

"If the government buys one of these companies, or even become an investor for one of these companies, the management company may these withdraw investments, and the investor or the company will be excluded from the group," - he said.

Chicago Stock Exchange stressed that the transaction with a reorganization of listing program to attract medium-sized enterprises. According to the stock exchange management’s plans, the program will attract those which do not meet criteria for listing on the Nasdaq or New York Stock Exchange, owned by InterContinental Exchange Inc.

Chicago Stock Exchange, which has 134 years of history, possess less than 0.5% of the market share in US equities. The marketplace will become an attractive destination for Chinese companies that intend to enter the US stock exchange, giving investors from China more access to the US market.

Concerns about increasing influence of China's economy on a global scale were exposed during the election campaign in the US. Then, the Republican nominee, who subsequently won the elections, said that he would impose a fee of 45% on imports of goods from China, and officially classify China as a currency manipulator. Trump is going to do it right after taking office on January 20.

Congressional Commission, which monitors security of trade relations between the US and China, recommended that the Committee on Foreign Investment blocks possible purchase of US assets by Chinese companies. 

source: reuters.com






Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat