After the failed initial public offering of the taxi-hailing app Didi Chuxing, a leading Chinese hawk in the US Congress slammed China’s listing in the United States because the failure caused scrutiny in Washington.
Florida Republican Senator Marco Rubio told the Financial Times in a statement that allowing Didi to sell shares on the New York Stock Exchange was “reckless and irresponsible”, and he called it “irresponsible” Chinese company”.
“Even if the stock price rebounds, American investors still have no insight into the company’s financial strength because the Chinese Communist Party prevents American regulators from reviewing the accounts,” Rubio said. “This puts the investment of American retirees at risk and remits much-needed U.S. dollars into Beijing.”
Rubio’s comments highlight how the troubled Didi IPO has inspired new efforts by Congress to tighten restrictions on China’s listing in the United States.
Last year, former President Donald Trump signed legislation to implement stricter accounting standards for Chinese entities that sell shares in the United States after Congress received support.
The law actually prohibits companies from listing in the United States if they Failed to submit audit Served on the Accounting Supervision Committee of Listed Companies in Washington for three consecutive years.
But Washington’s China hawks believe that the new legislation should serve as a starting point for a broader decoupling of the capital markets of the two countries.
Roger Robinson, former chairman of the U.S.-China Economic and Security Review Committee of the Congress, said: “This fiasco will only strengthen the resolve of many people on Capitol Hill and other places to require American investors to provide more protection for Chinese companies in our capital markets. “
Robinson is now the CEO of RWR Consulting Group, a Washington-based consulting firm, and he added that the incident “reminded Wall Street again, [the communist party’s] Market intervention and the party completely ignored a series of unfavorable factors. “
After regulators accused Chinese coffee chain Luckin Coffee of defrauding investors and forcing the company to list in the United States, Washington began to pay attention to China’s listing in the United States. Settlement payment of US$180 million. Earlier this year, Luckin Archive Filed for bankruptcy protection in the United States.
However, although US regulators have sounded the alarm for China’s listing in the US during the Trump administration, the Biden administration has not yet responded to the terrible Didi IPO. The US Treasury Department declined to comment, and the Securities and Exchange Commission also declined to comment.
Additional reporting by Kiran Stacey in Washington