Since the Sino -US trade war, China and the United States have been decoupled from finance.Finance is the integration of funds. Sino -US financial decoupling is to block US funds entering China and Chinese funds entering the United States.The crown disease epidemic has decoupled Sino -US financial law with the Hong Kong National Security Law, becoming a factual fact that it has become a nail on board.
Sino -U.S. Financial's decourse has gone through two stages:
First, the Sino -US trade war burns and financial markets.The Sino -US trade war began in 2018. Due to the twists and turns of Sino -US trade negotiations, the U.S. government began to issue threats. To delist to Chinese companies listed in the United States, it also issued a voice banned by federal retirement funds from investing in China.At this time, the Trump administration's main target to China's main attack was to win the trade agreement. The decoupling of Sino -US financial financial is not the main problem in the Sino -US economic and trade field.However, the United States has been looming in the United States' decourse.
On December 7, 2018, the Public Company Accounting Oversight Board (PCAOB) issued an important role statement on auditing quality and other international information.The statement states that if major information obstacles continue to exist, remedial measures for listed companies may be necessary or appropriate.This statement has led to some companies that intend to go to the United States to start to retreat.On May 24, 2019, SMIC announced that she applied for voluntarily delisted from the New York Stock Exchange.
On September 9, 2019, the US SEC passed the supplementary regulations on the domestic trading market order summary audit plan. The focus is on the company that required those who had only self -audit.Each quarter audit progress report.This new regulation is aimed at Chinese companies listed in the United States and provided more basis for investigating the actions of Chinese listed companies.
Chinese companies' listing in the United States has always bypassed the conventional audit steps in the United States.The audit of Chinese -funded companies is conducted in China, and the audit team submits an audit report to the SEC.This caused people to suspect that Chinese -funded companies were fraudulent in order to go public, and after the listing of Americans, they cut American leek.
The operation of cutting American leek is as follows: With the help of Wall Street, financial data fraud has entered the US capital market to attract American investors to invest.Later, the actual controller deliberately underestimated the company's market value and announced that he would privatize the company and repurchase all the stocks in the market to delist.After that, the same group of people re -valued the company, generally three to five times the delisting, and listed in China.As soon as it comes in, the executives make a lot of money, while American retail investors have lost heavy losses.Since 2013, more than 60 Chinese companies listed in the United States have staged this routine.
Second, the crown disease epidemic is decoupled from the Hong Kong National Security Law.The crown disease and the Hong Kong National Security Law have led to the dissatisfaction of the United States to China and reached an unprecedented peak.The United States banned federal retirement funds from investing in Chinese companies, and it is possible to delist in Chinese companies listed in the United States.
Fox TV reported on May 12 that President Trump is taking measures to cut off the connection between the US federal government employee retirement fund and the Chinese securities market.On the 13th, the Federal Federal Retirement Savings Savings Investment Commission stated that it would postpone the plan to adjust its investment portfolio to adjust its investment portfolio indefinitely.The original fund portfolio adjustment plan will invest some funds into some Chinese companies.However, the US Federal Retirement Fund has invested only more than 4 billion US dollars in China, far less than the funds that Chinese companies have merged in the US market.
Strengthen supervision of foreign companies' accountability bills
It happened that when the United States was extremely dissatisfied with China, Ruixing Coffee exposed financial fraud.Ruixing Coffee is a Chinese company listed in Nasdaq in the United States in May 2019.On April 2 this year, Ruixing Coffee claimed that his chief operating officer Liu Jian and some employees forged 2.2 billion yuan (about 431 million yuan), which was equivalent to 40%of the estimated annual sales.This news verified the problem they had always wanted to prove to the United States, that is, Chinese companies listed in the United States faked.
On May 20, the US Senate passed the accountability bill of foreign companies, requiring Chinese companies to be listed in the United States to strengthen information disclosure, and prohibit companies that do not comply with US regulatory standards on the US exchanges.The bill must also be passed in the House of Representatives and then signed it.On May 28, the Speaker of the House of Representatives Peroshan called on the Parliament to cooperate with the Trump administration to adopt appropriate countermeasures to deal with China.On May 29, Trump gave a speech at the White House.Perlis and Trump's speeches in the Democratic Party camp were enough to make foreign companies' accountability law formally become a law in the United States.
The foreign company's accountability bill is established for Chinese companies listed in the United States, and it is the iconic signal of the United States' policy on China.The bill ended the days when Chinese companies listed in the United States did not accept the US audit system constraints.At present, only China has not reached an agreement with the US PCAOB, and PCAOB cannot examine the audit report of Chinese companies listed in the United States.The Chinese government believes that the financial statements of the state -owned background investment are state secrets and do not allow PCAOB to obtain its complete audit report.If the bill takes effect, China will adhere to the state secrets and do not accept the US audit system, and can only choose to withdraw from the US capital market.
Trump could not wait for the accountability bill for foreign companies to take effect. On June 4th, the White House issued a memorandum of Chinese listed companies in the United States, requiring working groups responsible for the financial market to submit a report within 60 days.The situation of the law requires the administrative department and the US Securities and Exchange Commission and other relevant agencies to make suggestions.As of the end of February 2019, 156 Chinese companies in the United States were listed, with a market value of $ 1200 billion.The possibility of the U.S. government ordered that the delisting of Chinese companies is increasing.
China's listed companies in the United States have appeared in a secondary trend overseas.In November 2019, Alibaba raised $ 13 billion in Hong Kong.After the accountability bill of the foreign company was issued, Baidu said that he was also considering going to Hong Kong for the second time.On May 18th, Hang Seng announced the optimization and adjustment of the index series, which will be included in different authoritative companies of the same shares and the second listed company, thereby attracting high -quality assets that seek secondary listing.But the question is, will Hong Kong still be an ideal place for Chinese companies' overseas financing?
Trump announced on May 29 that the United States will take measures to cancel Hong Kong's special trade status.The international market has doubts about whether Hong Kong can continue to be as a free port and Asian financial centers. Hong Kong people who have a US dollar exchange in Hong Kong have a tide of US dollars. Hong Kong people with a monthly salary of more than 200,000 Hong Kong dollars are considering immigration to others.Morgan Chase's research report predicts that some foreigners living in Hong Kong will leave. It is estimated that 478.5 billion Hong Kong dollars (about 85.9 billion yuan) will leave Hong Kong, which will reduce Hong Kong foreign exchange reserves by 14%.Hong Kong's money is going to leave Hong Kong. Can companies in mainland China be funded from Hong Kong?
Sino -U.S. Financial's decoupling must cause economic losses to the United States. However, when a country places the security of political interweaving with politics, economic considerations are secondary, just like the Chinese government considers the Hong Kong National Security Law.
(The author is a professor of economics at Shanghai Normal University of China)
