Paul Atkins, President Trump’s candidate as the new president of the Bag and Securities Commission, faced a key issue just when his preparation was going to take off last week.
Would the lawyer and the Stock Regulator for a long time investigate Chinese companies, so a senator believes that they are meaningless and shameless violations of US laws of dissemination that have not been controlled for years?
Atkins said he would, which helped him squeeze in the confirmation process with only 52 votes.
This exchange has not been informed, between Republican Senator Rick Scott of Florida and Atkins, he thought the post has learned that Scott’s habitual, with manners, had no words with Atkins.
Scott said that his confirmation vote depended on ATKINS increasing scrutiny over Chinese companies, “excluding” and eliminating those who suggested or violating US laws of US exchanges. UU., As soon as he came to office.
The repression would be significant, probably one of the greatest that the SEC has risen in its history. Almost 300 Chinese companies, which represent more than $ 1 billion in market value, trade in US markets, namely the New York Stock Exchange and the Nasdaq compound.
Many or perhaps all of them, depending on what you are talking about, could be eliminated.
The controversy about Chinese companies with public actions that are quoted here has been brewing for years. Critics believe that giving China to our markets and public capital has fed their search for military and economic dominance. In 2020, Trump’s first term, signed by the legal provisions that provide regulators the ability to eliminate China Inc. for violations of the dissemination rules.
Among the concerns of legislators are that Chinese companies do not adequately take into account the influence and property of the Chinese Communist Party of their companies, and that they use the slave labor of Disidens as part of their normal commercial operations. American investors in China Inc. will have few resources if they are frauded out by a Rouge nation.
Biden’s Roadblock
According to the sources of Congress, efforts to take energetic measures against these alleged abuses were hindered by the Biden Administration, namely his head of the SEC, Gary Gender, now a business professor at MIT. (Genler did not respond to a request for comments). The debate was largely limited to the thoughts and corridors of the Congress.
Not anymore. With Trump back in the White House, his commercial war is heating, with an emphasis on deprivation of everything related to China. The excluded effort can now collect steam.
Atkins, who must inform not only the President but a congress controlled by the Republican Party for Supervision, Scott & Co. will be under pressure to finally take energetic measures.
These movements will put the two main exchanges from the US. UU. At a narrow point or course. The NYSE and the usual Picemeal Nasdaq of the usual exclusion companies when they do not meet the financial listing requirements or are accused of fraud. Here they would be cutting their balances of the main companies and technological retailers, such as the Chinese retailer, Alibaba, who pay a lot of money to trade in the United States and attract capital of our markets.
It would be one of the most chaotic corporate actions that the exchange has undertaken, and it cannot be said that the exchange would not have seen it coming. The Nyse Alibaba list, even when Jack Ma, its founder, was under the thumb of the Chinese Communist Party. Apparently he disappeared from public opinion after some minor criticisms that he made about China’s banking regulations.
The list ignored an interesting language in the “brochure” of Alibaba (the official document for the OPI), which reveals “risks related to doing business in the People’s Republic of China”, where the “economy differs from the economies of the most developed countries in many aspects, including the scope of government participation …”.
This is what may have caused blindness to all of the above: the NYSE charges up to $ 500,000 more additional tariffs for colleagues such as Alibaba (with a market capitalization of $ 250 billion). A list of the United States on the famous “Great Board” helps a lot to US investors who buy actions, even when critics claim that these actions finance the economic power of one of the most repressive regimes on earth.
A spokeswoman for Nyse Provid’s explanation: “Nyse is not discriminatory in the application of its standards of lists approved by SEC.”
An Alibaba press official did not return a request for comments. A SEC spokeswoman declined to comment.
The other great American exchange, the Nasdaq, also wanted the lucrative lists of Chinese companies, so much that he forged an escape in his controversial and now missing rules of diversity of the Board. These rules promoted US companies to name a certain number of women, minorities and people LGBTQ+ to the meetings.
It was not applied to China Inc. Thus, there is no mandate of the Nasdaq to force the companies that quote on the Chinese list to name ethnic and religious minorities oppressed.
Nasdaq had no comments.
End ‘Golden Shares’
Again, all this could be changing thanks to Scott’s efforts. He believes that US investors should know how Maney is being used when they buy a Chinese action, or an index fund containing Chinese public companies. In addition to its pressure on Atkins (who declined to comment), Scott’s leg legislation pushes that it would be to end the use of China Inc. of the so -called “golden actions.”
That is a special type of hero of shares by the PCCH that he believes that he gives him control over these companies outside the US dissemination rules, a position that Alibaba has faced in the past.
“Scott is obsessed with this problem,” said a person close to the senator.
