New U.S. Senate Bill Targets Chinese Concept Stock IPOs

    Despite the ravages of Covid-19, the United States is still escalating its competition with China. On Wednesday, the United States struck again, with the Senate passing a bill that could result in some Chinese companies being banned from listing on U.S. stock exchanges, but will Chinese companies abandon Wall Street entirely?

 

    Relations between the world's two largest economies have deteriorated significantly over the past few months, with tensions spreading over Chinese companies access to U.S. capital markets after the Luckin coffee accounting fraud scandal.

The bill, passed Wednesday, would require companies to certify that they are not under the control of a foreign government, or turn over auditing powers to U.S. accounting agencies to determine this. Chinese companies seeking to list in the U.S. face growing hostility from the Trump administration, while a series of disappointing IPOs last year has added to the anxiety.

However, will Chinese companies completely abandon Wall Street in the United States?