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U.S. targets Chinese listings on U.S. exchanges

U.S. lawmakers have also complained about Chinese corporate accounting practices and alleged ties between some Chinese companies and the military.

A U.S. House of Representatives panel focused on protecting investors will hold a hearing on Sept. 22 about risks related to Chinese stock market listings on American exchanges.

The Subcommittee on Investor Protection, Entrepreneurship and Capital Markets hearing will take place among growing concerns about recent Chinese government actions that spurred sudden and unexpected swings in share prices of Chinese shares listed on U.S. exchanges.

https://twitter.com/PriapusIQ/status/1432749300656840710

Earlier this week, for example, China forbade under-18s from playing video games here for more than three hours a week, hitting shares of some Chinese gaming companies traded in the United States.

Read more: “US is destructive”: China ratchets up its anti US propaganda

U.S. lawmakers have also complained about Chinese corporate accounting practices and alleged ties between some Chinese companies and the military.

China is cracking down on stocks that trade on U.S. exchanges

China’s most powerful companies — including Didi, Alibaba and Tencent — are suddenly under immense scrutiny as the country vows to crack down on domestic companies that list on U.S. exchanges, a move that could upend a $2 trillion market loved by some of the biggest American investors.

Beijing is stepping up its oversight on the flood of Chinese listings in the U.S., which are overwhelmingly tech companies. The State Council said in a statement Tuesday that the rules of “the overseas listing system for domestic enterprises” will be updated, while it will also tighten restrictions on cross-border data flows and security.

Read more: Biden: US had no purpose now to stay in Afghanistan, China-Russia real threat
The crackdown on tech is not a new trend, but because the nation has the ability to move quickly, any action could wreak havoc in major areas on Wall Street. Market analysts say it could not only threaten the IPOs in the pipeline, but it could also pressure the popular Chinese ADR market.

Reuters with additional input by GVS News Desk