Of course won’t be the same if China didn’t go all war wolf on other countries. To argue it’d be the same regardless is to say China’s actions have no consequences.
The stupidity of Xi regime is truly surprising. It’s as if they lack understanding of their own country and the world.
Alibaba (NYSE:BABA) shares drop 1.5% after the Senate passes legislation requiring U.S.-listed companies to certify “they are not owned or controlled by a foreign government.”
The certification would come into play if the Public Company Accounting Oversight Board can’t audit specific reports because the firm used a foreign public accounting firm not subject to the board’s inspection.
If the board can’t inspect the accounting firm for three consecutive years, the issuer’s securities will be banned from trading on the national exchange.
The law applies to any foreign company listing or raising capital in the United States, but China earned a specific mention.
Sen. John Kennedy, who sponsored the bill: “The Chinese Communist Party cheats, and the Holding Foreign Companies Accountable Act would stop them from cheating on U.S. stock exchanges.“We can’t let foreign threats to Americans’ retirement funds take root in our exchanges.”
Other Chinese stocks on the move: (BIDU-1.4%), (JD -1.8%), (IQ -7.4%), (MOMO-4.7%), (WB -3.1%), (SINA -2.9%)
I’m surprised it’s bi-partisan. This only boosts Trump for re-election. Between this and coronavirus originating in China, he can brag about how he warned everyone about China and was right. He’s been tough on China while everyone else looked the other way for decades.
Baidu (NASDAQ:BIDU), on the heels of news yesterday that the Senate passed legislation requiring U.S.-listed companies to certify “they are not owned or controlled by a foreign government,” is now evaluating delisting itself from the Nasdaq, Reuters reported.
Baidu shares, after closing down more than 1% yesterday, are lower by more than 3% in premarket trading.
The discussions are in the early going, the report said, amid the rising tensions between the U.S. and China. Baidu has had talks with the Hong Kong exchange, which would follow Alibaba, which has a dual listing.
Shares of other Chinese ADRs are weaker this morning in likely sympathy, like Huya (NYSE:HUYA), Luckin Coffee (NASDAQ:LK), ZTO Express (NYSE:ZTO) and DouYu International (NASDAQ:DOYU). Huya and ZTO also reported earnings.
Pretty good piece on tech and geopolitics. With China going rogue every tech company has to choose a side. There ain’t no Switzerland. Either you are with us, or you are against us.
TSM’s forward dividend yield is 5.6%. Pretty good return, and it’s a de facto monopoly.
I don’t agree with Trump on almost anything, but looking back, I think he will be credited with two things. One is the rethinking of globalization, and the other is the resetting of relationship with China. I have changed my mind on both in the last couple years. I used to be a Reaganist neoliberal, but I now agree with Trump that globalization needs to be rolled back some, and China needs to be more forcefully confronted. I am glad both are now mainstream bipartisan views.
Ross Perot was the first mainstream politician to oppose globalization and contest presidential election on that idea 28 years ago. There are many videos of him in the presidential debate where he explains the “giant sucking sound”. He pulled about 20% votes cutting into the votes that could have gone to GHW Bush leading to his (Bush’s) eventual defeat in 1992 general elections. Anyway, 28 years later, the NAFTA stands cancelled and replaced by something that requires 70+ % north american content.
