China's securities regulator has moved to clamp down on U.S. stock listings by small homegrown companies amid concerns that many of these firms have been used as vehicles for price-rigging, inflicting significant losses on U.S. investors, according to the Financial Times.
The China Securities Regulatory Commission (CSRC) has announced its intention to impose "tighter control" over the U.S. listings of Chinese companies with small market capitalizations and weak fundamentals. Sources close to the regulator told the Financial Times that such companies are particularly prone to market manipulation.
This regulatory action comes in response to multiple cases where small Chinese firms listed on U.S. exchanges were implicated in price manipulation schemes. The CSRC's crackdown aims to protect investors by preventing companies that are vulnerable to manipulation from accessing foreign capital markets without stricter oversight.
Analysts say the move reflects broader efforts by Beijing to enhance financial market supervision and restore confidence among international investors. The impact of these new measures could be far-reaching, potentially limiting the options for Chinese companies seeking to raise capital in the United States.
Details on the timeline for implementing these tighter controls have not been disclosed, and Chinese officials have not yet provided further comment on the matter. U.S. regulators and investors will be closely watching as this development unfolds, assessing its implications for cross-border listings and market stability.
Read next
21:10
central asia
Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov and China Eximbank Chairman Chen Huaiyu signed a $500 million loan agreement for the telecom sector on June 21.
15:30
Gazprom has signed new agreements with its Chinese partners to support the launch and operation of the cross-border section of the Far Eastern gas export pipeline to China.
12:24
UZBEKISTAN
The first pilot cargo shipment along the Uzbekistan–Kyrgyzstan–China–Mongolia transport corridor has been successfully completed.
23:15
Tajikistan and China
Tajikistan and China have agreed to establish a Joint Working Group on Artificial Intelligence, following high-level talks between President Emomali Rahmon and President Xi Jinping in Astana earlier this week.
21:00
China
China’s exports of rare earth magnets dropped sharply in May, plunging 52.9% from April to just 1,238 metric tons, their lowest monthly level since February 2020. The drop comes amid tightened export controls and growing customs scrutiny.
What is your opinion on this topic?
Leave the first comment