Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Rubio unveils bill to kick blacklisted Chinese firms out of U.S. markets

10/27/2020 | 09:53am EST
FILE PHOTO: Hearings to Examine Implementation of Title I of the CARES Act

WASHINGTON (Reuters) - Top Republican Senator Marco Rubio has introduced legislation to block access to U.S. capital markets for Chinese companies that have been blacklisted by Washington, threatening a blow against Chinese firms that rely on U.S. investors for funding.

The bill, which Rubio submitted late on Monday, would bar U.S. investment firms, retirement funds, and insurance companies from taking stakes in Chinese companies that have been placed on a trade black list overseen by the Commerce Department or added to a list of firms backed by the Chinese military according to the Pentagon.

If the legislation is approved, blacklisted Chinese companies would also be banned from trading on U.S. exchanges after a year-long grace period.

"The Chinese Communist Party's exploitation of U.S. capital markets is a clear and ongoing risk to U.S. economic and national security that must be addressed," Rubio said in a statement to Reuters.

The legislation could hit surveillance camera maker Hangzhou Hikvision Digital Technology Co Ltd, which was added to the trade blacklist for its involvement in China's suppression of its Uigher Muslim minority and placed on the DOD list in June. It could also hurt China Telecom and China Mobile, which the Defense Department also labeled as backed by the Chinese military.

"It's a dark day for those on Wall Street who assumed that mainland-listed Chinese companies would continue to have unfettered access to the unregulated and unscreened 'back door' into U.S. capital markets via Exchange-traded funds (ETFs) benchmarked against indices," said Roger Robinson, a former White House official in the Ronald Reagan administration who has sought tougher controls on Chinese companies in U.S. capital markets.

The proposal comes amid growing pressure from Congress and the Trump administration to crack down on Chinese companies that enjoy the backing of U.S. investors but do not comply with U.S. rules faced by American rivals.

In August, U.S. Securities and Exchange Commission and Treasury officials urged President Donald Trump to delist Chinese companies that trade on U.S. exchanges and fail to meet its auditing requirements by January 2022.

The Senate unanimously passed legislation in May that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they follow standards for U.S. audits and regulations.

(Reporting by Alexandra Alper; Editing by Alexandra Hudson)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
CHINA MOBILE LIMITED -0.95% 47.15 End-of-day quote.6.67%
CHINA TELECOM CORPORATION LIMITED -1.34% 2.21 End-of-day quote.2.79%
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD. 1.36% 67.65 End-of-day quote.39.46%
Latest news "Economy & Forex"
05:54pTwitter permanently suspends My Pillow CEO for election misinformation
RE
05:54pHHS names Susan Orsega as acting surgeon general
RE
05:45pAlan Mnuchin-backed SPAC in talks to take Sharecare public -sources
RE
05:44pTwitter permanently suspends My Pillow CEO for election misinformation
RE
05:44pUtilities Down As Investors Hedge Bets Ahead Of Earnings -- Utilities Roundup
DJ
05:43pCommunications Services Up On Growth Bias -- Communications Services Roundup
DJ
05:37pOil Search sees 'another challenging year', lower output in 2021
RE
05:36pTech Up Ahead Of Earnings, Microsoft Adds To Gains After Bell -- Tech Roundup
DJ
05:29pFinancials Down As Treasury-Yield Rally Stalls, UBS Rises -- Financials Roundup
DJ
05:26pConsumer Cos Up After Strong Economic Data -- Consumer Roundup
DJ
Latest news "Economy & Forex"