The US authorities have found a new weak point in the Chinese economy, writes CNBC. They threatened to ban stock trading in technology companies from the Asian country, after which their quotes collapsed.
On March 25, the Hong Kong Exchange stopped trading in shares of four companies from the technology sector at once: the marketplaces Alibaba and JD.com, the search engine Baidu and the game developer NetEase. The reason was a sharp decline in the value of their securities – up to four percent in one session.
A day earlier, the US Securities and Exchange Commission (SEC) began to apply the law adopted during the administration of the previous US President Donald Trump. According to him, the department can appoint a state audit for companies in respect of which it has suspicions that they are controlled by the authorities of foreign states or are accountable to them.
In particular, Chinese companies traded on US exchanges will have to disclose the names of all members of the governing bodies of the Chinese Communist Party (CCP). If the SEC has claims, this may become a reason for delisting (exclusion from the stock list and termination of trading) of a particular company.
Thus, Chinese tech corporations have been under pressure in recent months from Washington and Beijing to restrict their capabilities and take control of them. At the end of last year, the country’s leadership banned Ant Group, Alibaba’s fintech division, from listing, out of concern that its activities could undermine the country’s centralized economic system.
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source https://pledgetimes.com/the-us-found-a-new-weak-point-in-china/
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