In a move that rachets up pressure on Chinese firms which have listed in the United States, the Trump administration said, it will study ways to safeguard Americans from the risks of investing in Chinese companies and force them to comply with U.S. accounting and disclosure norms.
While speaking at a White House briefing revolving around China and Hong Kong, Trump said he is instructing the presidential working group on financial markets to study “differing practices of Chinese companies listed on U.S. markets with the goal of protecting American investors”.
“Investment firms should not be subjecting their clients to the hidden and undue risks associated with financing Chinese companies that do not play by the same rules,” said Trump while adding that Americans are entitled to “fairness and transparencies.”
Members of the working group include Federal Reserve Chairman Jerome Powell, Treasury Secretary Steven Mnuchin, Securities and Exchange Chairman Jay Clayton, Federal Reserve Bank of New York President John Williams, and other regulatory officials.
The development comes in the wake of the U.S. government taking steps to mitigate threats posed by China and comes at a time when relations have taken a downward turn over the source of the deadly coronavirus which emerged in Wuhan, China.
In May, the U.S. Senate had also passed legislation aimed at preventing select Chinese companies from listing their shares on U.S. exchanges unless they comply to U.S. audits and regulatory standards.
Further, with China’s plan to impose a new national security legislation over Hong Kong, a former British colony, U.S. Secretary of State, Mike Pompeo made it clear, if China goes ahead with the move, Hong Kong is likely to lose its special status as a global financial center and lose its special treatment under U.S. law.
References:
reuters.com
While speaking at a White House briefing revolving around China and Hong Kong, Trump said he is instructing the presidential working group on financial markets to study “differing practices of Chinese companies listed on U.S. markets with the goal of protecting American investors”.
“Investment firms should not be subjecting their clients to the hidden and undue risks associated with financing Chinese companies that do not play by the same rules,” said Trump while adding that Americans are entitled to “fairness and transparencies.”
Members of the working group include Federal Reserve Chairman Jerome Powell, Treasury Secretary Steven Mnuchin, Securities and Exchange Chairman Jay Clayton, Federal Reserve Bank of New York President John Williams, and other regulatory officials.
The development comes in the wake of the U.S. government taking steps to mitigate threats posed by China and comes at a time when relations have taken a downward turn over the source of the deadly coronavirus which emerged in Wuhan, China.
In May, the U.S. Senate had also passed legislation aimed at preventing select Chinese companies from listing their shares on U.S. exchanges unless they comply to U.S. audits and regulatory standards.
Further, with China’s plan to impose a new national security legislation over Hong Kong, a former British colony, U.S. Secretary of State, Mike Pompeo made it clear, if China goes ahead with the move, Hong Kong is likely to lose its special status as a global financial center and lose its special treatment under U.S. law.
References:
reuters.com
