United State president Donald Trump said on Friday that ways in which Americans can be safeguarded from the risks associated with investing in Chinese companies will be studied and explored by the Trump administration.
Analysts see this as a tactic of Trump to increase pressure on Chinese companies to comply with accounting and disclosure rules of the United States.
Trump has already instructed the presidential working group on financial markets to undertake an extensive study on the "differing practices of Chinese companies listed on U.S. markets with the goal of protecting American investors," Trump said while speaking at a White House briefing about the measures his administration has taken in targeting Beijing over Hong Kong.
"Investment firms should not be subjecting their clients to the hidden and undue risks associated with financing Chinese companies that do not play by the same rules," he said.
Americans are entitled to "fairness and transparencies", Trump added.
Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, Federal Reserve Bank of New York President John Williams, Securities and Exchange Chairman Jay Clayton and other regulatory officials are part of the working group.
This announcement by Trump comes at a time when the US government has started to take the trade and technology battle with China to the capital markets after the souring of relations between the two largest economies of the world have soured over the origin and alleged concealment of the novel coronavirus by the Chinese government and the Chinese Communist Party.
Under pressure from the White House, plans to allow one of its funds to track an index that includes controversial Chinese companies, was halted by an independent board tasked with administering federal worker and military pension funds earlier this month.
A new legislation was also passed by the US Senate in May this year that effectively will prevent a host of Chinese companies from using the US stock exchanges to list their shares until such time that the companies align themselves with standards for US audits and regulations.
In addition to the long standing trade and coroanvirus management row between the US and China, the two countries could also go to loggerheads over the recent decision of Beijing to impose a new national security legislation on the former British colony of Hong Kong.
US Secretary of State Mike Pompeo has said the territory no longer warrants special treatment under U.S. law that has enabled it to remain a global financial centre.
(Source:www.zeebiz.com)
Analysts see this as a tactic of Trump to increase pressure on Chinese companies to comply with accounting and disclosure rules of the United States.
Trump has already instructed the presidential working group on financial markets to undertake an extensive study on the "differing practices of Chinese companies listed on U.S. markets with the goal of protecting American investors," Trump said while speaking at a White House briefing about the measures his administration has taken in targeting Beijing over Hong Kong.
"Investment firms should not be subjecting their clients to the hidden and undue risks associated with financing Chinese companies that do not play by the same rules," he said.
Americans are entitled to "fairness and transparencies", Trump added.
Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, Federal Reserve Bank of New York President John Williams, Securities and Exchange Chairman Jay Clayton and other regulatory officials are part of the working group.
This announcement by Trump comes at a time when the US government has started to take the trade and technology battle with China to the capital markets after the souring of relations between the two largest economies of the world have soured over the origin and alleged concealment of the novel coronavirus by the Chinese government and the Chinese Communist Party.
Under pressure from the White House, plans to allow one of its funds to track an index that includes controversial Chinese companies, was halted by an independent board tasked with administering federal worker and military pension funds earlier this month.
A new legislation was also passed by the US Senate in May this year that effectively will prevent a host of Chinese companies from using the US stock exchanges to list their shares until such time that the companies align themselves with standards for US audits and regulations.
In addition to the long standing trade and coroanvirus management row between the US and China, the two countries could also go to loggerheads over the recent decision of Beijing to impose a new national security legislation on the former British colony of Hong Kong.
US Secretary of State Mike Pompeo has said the territory no longer warrants special treatment under U.S. law that has enabled it to remain a global financial centre.
(Source:www.zeebiz.com)
