The controversy over the initial stages of the Covid-19 infection in China has allowed a raft of measures to be put on the table to ensure the superpower advantage remains with the US. Washington wants to starve Chinese companies of money, with investors required to consider “America first”.
In a speech given in the White House Rose Garden, President Trump said he was taking action to “protect the integrity of America’s financial system”, as he announced an investigation by White House officials into the differing practices of Chinese companies listed in the US because American investors needed “protecting”. Many in the administration want to halt Chinese IPOs in the US completely.
China needs to comply
Calls for such a move were accelerated after allegations of fraud at Chinese companies that have listed in America. In April, Nasdaq-listed Luckin Coffee, which aimed to become China’s Starbucks, revealed that some of its employees had fabricated sales accounts. This eventually resulted in Nasdaq issuing a delisting notice for the group, with the notice citing public interest concerns raised by the fabricated transactions and Luckin’s failure to disclose material information.
View Full Article – published by Charles Stanley on 12th June 2020
— Charles Stanley Wealth Managers (@_CharlesStanley) June 13, 2020