A study by a U.S. university shows that initial public offerings by Chinese companies in the U.S. stock market reached a 10-year high last year, a Time when the U.S. and China were in the midst of a full-blown deterioration in Cold War relations, according to experts who have uncovered the mystery behind this.
According to a study by the University of Florida, 32 Chinese companies raised a total of $12 billion in initial public offerings (IPOs) on the U.S. stock market last year, the most in a decade and four times as much as in 2019, according to the Voice of America. This year, nine more Chinese companies came to the U.S. market for initial public offerings as of mid-February, raising $2 billion.
The Trump regime has changed relations with the Chinese Communist Party in many ways since it took office, and relations between the two countries have worsened since the start of the trade war, with then-Secretary of State Mike Pompeo looking for alliances around the world to counter the Chinese Communist Party in a comprehensive manner, and making the U.S. relationship with the Chinese Communist Party a fully competitive rival, an enemy, not a friend.
On why Chinese companies are frequently entering the U.S. stock market under the U.S. government’s tightened regulation, current affairs commentator Li Linyi said, “Last year was called the year of NASDAQ, and Chinese stocks listed on NASDAQ reached the peak, a large part of the reason is that these companies can’t raise funds at Home, so they can only come overseas to raise funds, but there are also some companies that are not very tight on money, but it comes with other purposes.
Professor Feng Chongyi, a China expert at the University of Technology Sydney, said the Trump Administration introduced a law last year called the Foreign Company Accountability Act, which mainly allows U.S. monitoring agencies to treat Chinese companies the same way, with credible third-party institutions auditing their qualifications, auditing their equity institutions, and auditing them according to the U.S. accounting system before they can be listed in the U.S. But this is a new policy, a new policy.
But this is a new policy, a new law, which has not been implemented in time, and there is a time lag in it. He believes this is one of the reasons why many Chinese companies are flocking to the US.
The second reason, he believes that these Chinese companies can gain access to mountains and water in the U.S. is because there are a large number of accomplices of the Chinese Communist Party on Wall Street in the U.S. Many of them are in deep collusion with the Chinese Communist regime, and they adopt various ways to circumvent the monitoring of the U.S. to raise money for these Chinese companies to go public in the U.S. to make huge profits, which is what these greedy and unscrupulous businessmen on Wall Street do.
He believes that, on the other hand, these Chinese stocks pose a great risk to U.S. investors. If these these Chinese companies go bankrupt or their share prices plummet, they are actually cutting American stockholders as Chinese leeks as well. This is a common thing in China, the Chinese stock market has turned into a leek cutting machine, and if it is a state-owned enterprise, it is scraping the people’s money for the state-owned enterprise.
He stressed that the United States has introduced a series of measures to regulate Chinese stocks, including this “Foreign Company Accountability Act” and other is the U.S. bipartisan set down at the time to protect U.S. investors, the U.S. President changed, has passed the bill can not be overturned, the system will not change, but the strength may be weakened.
He concluded by saying that if you look at the West as a whole, the nest thing is to have a group of complicity or co-conspirators to help them harvest stockholders.
Li Linyi also said, for example, RuiXing coffee last year was exposed to fraudulent performance, and later in June was delisted, so the future of the Chinese stock statements to be transparent, but he is worried that after Biden came to these basic no statement, there may be a relaxation of this part of the Chinese stocks, the Chinese companies with problems audit will be dragged back.
And Mark Herbert, a senior commentator and founder of the financial advisory firm Herbert’s Digest, told the Voice of America that in addition to raising large sums of money, there is almost no risk for Chinese companies to come to the U.S., so why not?
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