Congress could withdraw the Chinese lists from the American stock exchanges. United States, but it won’t happen overnight

Normally, powerful entities would make the adoption of this “anti-China” bill a difficult battle. The nasdaq
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the NYSE
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The Securities and Exchange Commission and Wall Street in general are strongly opposed to moving and extracting billions of dollars from their pockets. And Speaker of the House of Representatives Nancy Pelosi said Thursday that her Capitol camp is willing to discuss the issue, but no vote has been promised.

But the legislation comes amidst surprising American political competition. United States To show who is tougher with China, and during the crucial months before the presidential election.

Also by Tanner Brown:Relations between EE. United States And China is bad and worsening, with major ramifications for trade and investment, and the American presidential election. United States

Even if an amendment to the bill is finally adopted, companies already listed will have three years to comply. It is enough time for China to increase the attractiveness of its own fields and for Chinese companies to prepare for a relatively soft landing in their home country, probably Hong Kong for large companies already listed growth for small startups, according to Peking University Paul Gillis.

China has already opened more attractive doors for public fundraising. After ChiNext, like a ten-year-old Nasdaq, hosted tech startups in Shenzhen, neighboring Shanghai learned of the company’s pains and successes and presented last year the Science and Technology Innovation Board, or Star Market. Its niche is the creation of promising startups that are losing their technology that are promising and could otherwise appear in New York.

To date, some 200 Chinese companies are listed in the United States. Some, more transparent than others, have a total market value of more than $ 1.8 trillion, according to the American Commission for Economic and Security Review. United States and China.

His departure would represent a significant flight of capital from American stock exchanges, a drop in American tax revenue. The USA, a loss for investors and, according to some, a prestigious coup for Wall Street as the center of global finance.

But it would also mean those who are willing to buy from listed companies in the United States. United States China would not be deceived as it was recently by Luckin Coffee, whose actions
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He resumed activities this week after a six-week freeze. Luckin’s US certificates of deposit fell 36% on Wednesday from their April 6 closing price, after which the Nasdaq suspended operations. The stock fell 89% in the first quarter of this year. It ended the week at $ 1.38, compared to a close above $ 40 on March 6.

Nasdaq informed former Starbucks
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rival facing foreclosure after revealing that some employees made $ 300 million in sales. Luckin is appealing the decision, but if he steps down from the list, investors would essentially lose all of the capital, a “cut” to which an analyst advised investors to prepare.

Opinion:Luckin Coffee Shows How Risky IPOs Can Be Risky, But Investors Just Don’t Listen

“Many of these companies have already caused scandal and cost investors dearly because they were not transparent in their reports,” Larry Kudlow, White House economic advisor, told Fox News. “The Chinese government prohibits this type of transparency.”

The painful foreclosure decision could continue to rock Wall Street and the SEC, but lawmakers seem ready to act.

“We want investors to understand what they are investing in,” said Senator John Kennedy, R-Louisiana and co-sponsor of the Senate bill. “And these reports must be accurate, otherwise you are going to have a lot of problems.”

Tanner Brown covers China for MarketWatch and Barron’s.