Comments regarding the US’ Holding Foreign Companies Act from the China Securities Regulatory Commission (CSRC) weekend statement
- the US bill that aims to delist Chinese companies from the US stock exchange is “directly targeting China”
- is grounded in political rather than professional motives
- would force Chinese companies to adhere to US securities law and could potentially delist Chinese companies if passed, while some of its content explicitly targets China.
Another indication of rising US/China strains. As these increase they tend to be a negative input for financial market risk assets (and FX) and supportive of safe haven alternatives. Add it the growing list:
- coronavirus origin and spread
- tension over new rules from Beijing to be imposed on Hong Kong