Bank sanctions and delistings: U.S. is poised to take financial fight to China
The dimensions of the conflict broadened this month when President Trump moved to prevent a federal retirement fund from investing billions of dollars in shares of Chinese companies. Days later, the Senate unanimously passed a bill that would require Chinese firms listed on U.S. stock exchanges to provide transparency about their finances and ownership to auditors. The measure, if signed into law, could force scores of Chinese firms to delist from the New York Stock Exchange and the Nasdaq.
This week, the stakes ratcheted dramatically higher after U.S. lawmakers proposed putting sanctions on China’s banks if the ruling Communist Party were to move ahead with legislation that would undermine Hong Kong’s autonomy. The Trump administration is expected to respond to China’s passage of a Hong Kong national security law — perhaps by revoking U.S. trade privileges — but it’s not clear if that will take the form of financial sanctions.
After squeezing the flow of trade, technology and visas, U.S. moves to choke off capital could present the biggest challenge of all for …continued .
[Source: Washington Post]