In brief
In the waning months of the Trump administration, the then-president signed a raft of executive orders and new legislation that potentially limit access by Chinese companies to US capital markets. Chief among these actions, the Holding Foreign Companies Accountable Act (“
Act“) (signed into law on 18 December 2020) bans public trading in the United States in “covered issuers” audited by firms with offices in non-US jurisdictions where the Public Company Accounting Oversight Board (PCAOB) is unable to inspect. The Act stems from a longstanding issue relating to the ability of the PCAOB to conduct inspections of audit firms in certain countries.
What Does the Future Hold for Chinese Securities?
By Jennifer Sireklove, CFA, Managing Director, Investment Strategy
One of the calling cards of the Trump administration was its combativeness with China. With the new Biden administration in place, it’s natural to wonder whether that approach is likely to continue or whether US policy will reverse course.
Although it’s easy to forget in a year when every week feels like a short lifetime, one of the big stories as we closed out 2020 was the Trump administration’s ban on certain Chinese securities for US investors. This move was just the capstone in a series of increasingly aggressive positions against China during Trump’s time in office. While it may be hard to remember, this stance was quite different from the previous approach, which was guided by the belief that liberalizing Chinese markets would ultimately lead to liberalizing its politics.
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Takeaways - Tariffs and other restrictions on trade with China are unlikely to change significantly under the Biden administration, so companies will have to adapt their.
Home US-China investment flows belie geopolitical tensions
US-China investment flows belie geopolitical tensions
Data show efforts by Trump administration to decouple economies has fallen short
World Economy News
4 Feb 2021 • 3 min read
Kuaishou, a popular Chinese short video platform, seems a world away from geopolitics. It shows items such as a grandmother singing Hey Jude with her Chihuahua, migrant workers dancing at construction sites and farmers making pork dumplings.
But the company’s initial public offering in Hong Kong this week which is set to be the world’s largest since the start of the coronavirus pandemic reveals a basic truth about the US’s strategic rivalry with China: when it comes to making money, there is much more that attracts than repels.