A US government commission has called for tighter controls on flows to China’s capital markets in a move that, if approved, would have profound implications for asset managers and index providers – after US positions in Chinese equity and debt securities jumped 57.5% from $765 billion in 2017 to $1.2 trillion in 2020.
The latest annual report from the US-China Economic Security Review Commission highlighted security concerns from a huge rise in US investment. “A surge of US investor participation in China’s markets is outpacing the US government’s defence against the diverse threats to US national and economic security posed by US investment in some problematic Chinese companies,” the report to Congress said.
See the full story: Financial Times
- By Sean O’Meara
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