Chinese Economics Thread
- Thread starter Norfolk
- Start date
@Orthan cause for China sovereignty matters, while on the US side it was greed. The US can deny the listing from Day 1 if the Chinese enterprises don't follow the rules so why the exception. Well you have to ask that question not to the US regulators but to Wall Street Bankers who handle their IPO.
Chinese stock markets in Hong Kong and Shanghai are already among the biggest IPO stock markets, just not as big as US markets. Hong Kong stock market has been the largest IPO stock market for many years over the past 10 yrs, especially before the pandemic. All other countries stock markets are not as big as US stock markets.
Where else can you find that many new companies IPO listings, besides the US and China?
There isn't? What is , and then?
Do the US regulators audit all the companies listed in the US markets all the time, in the same manner? Do the US regulators ask for the same kinds of financial records from all the companies?
Or are they actually picking the Chinese companies now?
US investors will come to Chinese stock markets. Given these companies' growth prospects, they have no choice.
I used to be an auditor so I’ll chime in here. The US always had access to financial records. However, the US wants the audit workpapers. Audit workpapers include company source documents which is what China absolutely needs to protect. So for example, when auditing accounts receivables, auditors typically request customer lists. To audit accounts payable auditors request vendor and supplier lists.
So now imagine the US gets its hands on Alibaba or Tencents vendor lists it will know the identity of every tech supplier in China. Given how the US wants to sanction them, China would be handing the US a hitlist. So I’d rather see not a single Chinese company listed abroad than hand over any audit workpapers.
Also to audit payroll expenses audit workpapers include historical and current payroll data that includes employee names, salaries, benefits, tenure etc so the US would have access to the identities of China’s tech workforce. See the problem?
Wow that's actually worst than I thought. In my mind auditors were always about financials, but the way you are describing it here, this is much more than that
China needs to absolutely ban any Chinese company which aims to list in the US. Furthermore, China needs to go beyond just banning new listings
It should ban any existing Chinese companies who are already listed in America
And further down the line, it should ban any company operating on its market, from also being listed in the US. This also includes foreign companies such as Apple, Microsoft, Tesla etc. This is an unacceptable amount of information that the CIA will have access to
Presented with such a threat, the companies themselves will lobby their Gov to stop from doing that.
I never said there isnt. I myself made the question. Im not a financial expert.
I think so. I remember posting something like that in this forum, months ago.
Im not sure that will apply to all investors. Some (or many) may not have the desire to invest in a chinese stock exchange. There was a reason for these companies to list in the US stock exchanges.