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News > China

China Slams Law Barring Its Firms From U.S. Stock Market

  • People walk past the Stock Exchange, New York, U.S., Nov. 9, 2020.

    People walk past the Stock Exchange, New York, U.S., Nov. 9, 2020. | Photo: Xinhua

Published 21 December 2020
Opinion

Chinese diplomats called on the U.S. to provide a fair, just, and non-discriminatory regulatory environment for companies from various countries.

China’s Foreign Affairs Ministry spokesperson Wang Wenbin voiced firm opposition to President Donald Trump's signing into law a piece of legislation that hinders the normal listing of Chinese companies in the United States.

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The "Holding Foreign Companies Accountable Act" demands additional information disclosure from foreign public companies in the U.S. market, including the requirement that foreign issuers of securities establish that they are not owned or controlled by a foreign government.

"This was nothing but an unreasonable political crackdown on Chinese companies listed in the United States," Wang said.

Noting that the move has severely distorted the basic principles of market economy the U.S. always claims to champion, he said it would deprive U.S. investors of benefiting from the development of Chinese companies, and weaken global investors' confidence in the U.S. capital market.

"We urged the United States not to implement the discriminatory provisions in the law that involve China, and to cease the erroneous practice of politicizing securities supervision," Wang said.

He called on the U.S. side to promote audit and regulatory cooperation jointly with the Chinese regulatory authorities on the basis of mutual respect, and to provide a fair, just and non-discriminatory regulatory environment for companies from various countries to be listed in the United States.

As an immediate effect of the new U.S. sanctions against China, the benchmark index of the Hong Kong Stock Exchange closed with losses of 0.72 percent.

One of the blacklisted public companies, the Semiconductor Manufacturing International Corporation (SMIC), lost 3.63 percent on the Hang Seng Index.

Other sub-indices that ended "in red" were Finance (-0.91 percent), Services (-1.15 percent), and Real Estate (-1.43 percent).

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