US authorities found a new weak point in the Chinese economy, writes CNBC. They threatened to ban stock exchanges with shares of technological companies from the Asian country, after which their quotes collapsed.
On March 25, Hong Kong Exchange stopped trading in shares at once four companies from the technological sector: Alibaba marketers and jd.com, Baidu search engine and Netease game developer. The reason was a sharp reduction in the cost of their securities – up to four percent in the framework of one session.
During the day earlier, the US Securities and Exchange Commission (SEC) began to apply the law adopted when administration of the previous US President Donald Trump Law. According to him, the Office may appoint a state audit for companies for which he has suspicions that they are controlled by the authorities of foreign states or accountable to them.
In particular, Chinese companies who traded on American stock exchanges will have to disclose the names of all members of the governing bodies consisting in the Chinese Communist Party (PDA). If SEC has complaints, it may be a reason for delisting (exclusion from the exchange list and stopping a bidding) of a particular company.
Thus, Chinese technological corporations in recent months have pressure from Washington and Beijing, which seeks to limit their capabilities and translate under their control. At the end of last year, the leadership of the country banned the exchange of the Ant Group – the Alibaba division in the FINTEKA region, from concerns that his activity can shake the centralized economic system of the country.