US threatens to ban Chinese firms' trading in 2024 over market regulations

[Bogeyman]

The US' Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that Chinese firms might be kicked out of American stock exchanges in 2024 unless they comply with regulations.

The head of the US market regulator said around 270 China-based companies need to open their books and financial records, in an op-ed he wrote for the Wall Street Journal late Monday.

He said the Chinese firms could be prohibited trading from the US stock markets by early 2024 if they fail to comply with the regulations.

"The SEC has taken all the required steps to implement this law, and the oversight board is on track to finalize its relevant rulemaking before the end of the year ... The three-year clock began ticking in 2021," Gensler wrote.

SEC warned in July it would require Chinese companies to disclose additional information if they want to be listed on US stock exchanges in initial public offerings (IPOs).

Around 270 Chinese firms listed on US exchanges have a total market value of over $2 trillion, eight of which are Chinese state-owned companies, according to the US-China Economic and Security Review Commission.

US threatens to ban Chinese firms' trading in 2024 over market regulations

Gary Gensler says Chinese firms could be prohibited trading from markets if they fail to comply with regulations - Anadolu Agency

www.aa.com.tr

 

[Saithan]

Why wait until 2024, suspend the companies until they comply. If they are not complying then their tradings should be suspended until they comply. That is how it's usually done.

 

[Bogeyman]

Why wait until 2024, suspend the companies until they comply. If they are not complying then their tradings should be suspended until they comply. That is how it's usually done.

But here we are talking about an amount of 2 trillion dollars. The exit of such an amount from the US stock market would have staggering consequences for the US. Frankly, it is surprising that they even took such a decision. Because this is a sign that the US will get serious in its trade war with China and is ready to pay the price.

 

[Saithan]

But here we are talking about an amount of 2 trillion dollars. The exit of such an amount from the US stock market would have staggering consequences for the US. Frankly, it is surprising that they even took such a decision. Because this is a sign that the US will get serious in its trade war with China and is ready to pay the price.

True, I imagine that economic greed was the reason for not being more strict and SEC allowed this to continue. But since the money flow isn't trackable and companies aren't transparent US/SEC decides it's time to do something about it.

The early warning is probably to make investors change investments.

I remember how the Enron scandal unfolded. SEC should have done their job properly from the beginning instead of allowing it to reach such volume.

 

[xizhimen]

I always oppose big Chinese companies to go public in US, now Beijing is opening a new stock market, Chinese companies can get more than enough money in Hong kong, Shanghai, Shenzhen and now Beijing.

 

[xizhimen]

Why wait until 2024, suspend the companies until they comply. If they are not complying then their tradings should be suspended until they comply. That is how it's usually done.

Cause they are just bluffing, without China money and products, US will collapse overnight together with its might dollars, China is the only country that can keep debt ridden US economy afloat and American consumers still enjoying artificial high standard of living they don't deserve. in one word, only China can save America.

 

[Nilgiri]

But here we are talking about an amount of 2 trillion dollars. The exit of such an amount from the US stock market would have staggering consequences for the US. Frankly, it is surprising that they even took such a decision. Because this is a sign that the US will get serious in its trade war with China and is ready to pay the price.

It would punish PRC whole lot more if you look at the investment routes it is reliant on (esp. otherwise*), combined with its continued heavy dependence on USD (debt printing and all) for forseeable future.

US market cap can take a whole lot of trillions lost past "2" tbh since its just inflation indexed to the debt for most part anyway, innovation floorboards and VC breakouts are all modelled extensively below it.

So a 2 trillion withdrawing means apple, tesla et al. simply occupy that room over time given this saturation.
Very different to non-USD printing country, especially one heavily reliant on exports still.

*There is recently a lot to unpack with just the evergrande debacle