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Saturday, September 28, 2019

The US government is eyeing to delist Chinese firms from US stock markets.

https://finance.yahoo.com/news/u-eyeing-possibility-delisting-chinese-161819351.html

The US government has taken a harder stance against China now.

Maybe the US thinks that it can force China to bend over for the upcoming trade talk but China has stated that it won't succumb to any threat or coercion.

I already suspected something was amiss when China was asked to cancel the US farm visits by Mnuchin.  Look like my hunch is right now.

9 comments:

Unknown said...

Best times to buy china stocks .... starting with those listed in US tonight, and those in HK / Shanghai on Monday!

Geopolitical shocks are the BEST opportunities for irrational discounts!

Eric Ho said...

https://www.scmp.com/news/china/diplomacy/article/3030750/china-will-not-be-cowered-foreign-minister-wang-yi-says

China Wang Yi has hit back at Trump.

Eric Ho said...

I believe this is just Trump's ploy in negotiation and the forced delisting of Chinese companies won't happen.

If Trump really carries this out, China will also shut its financial market to the US companies. The US Insurance and credit companies (visa and master) will be badly hurt then.

Unknown said...

China just announced this month to scrap qfii & rqfii investment quotas to allow foreigners to have unlimited buying of china securities. China needs anyone & everyone to help support its fickle & retail-dominated markets, especially foreign institutional mutual funds & etfs. The aim is to have institutions both foreign & domestic (china pension funds & insurance par funds) take over from retail, similar to other major stock markets.

Unlikely china will backtrack from their long stated plans to strengthen & professionalise their markets.

As for western retail finance like visa & mastercard, they have already written off china as a major contributor to revenues or profits. Beijing had locked them out too long & the opening of china market middle of 2019 is too little too late. China retail finance already monopolised & DNA'ed by mobile payments & wealth mgmt products. Even their monopoly credit card Unionpay is slowly losing out to wechat & alipay and the various financial products & schemes sold thru the apps.

Eric Ho said...

Are you sure Visa and Master have written off China market? Please see the article below.

https://www.businesstimes.com.sg/banking-finance/mastercard-says-plans-to-apply-for-china-license-to-clear-card-payments

Visa and Master are still trying to gain access into China market but Trump's move will dash their hopes.

Investment flows are 2 ways and not one way. If the US banned China, China would ban the US too but would allow other foreigners to invest in China. Just look at the US-China tariffs - You tax me, I will tax you too.

Unknown said...

That BT copy & paste article is old & outdated news LOL!

China all along was ALREADY practising semi-banning of foreign investors into china stocks & bonds. Which Beijing have announced in Sep to remove. They will maintain this stance & in fact will surreptitiously tell Americans how to by-pass. E.g. investing via vehicles, funds, etfs domiciled in Ireland, UK, Luxembourg, Singapore which invests into China & HK assets as underlying. Chienese are experts at by-passing --- after all they have been by-passing their own capital controls for the past umpteen years! LOL!

Since 2015 china is ALSO ALREADY practising outward investment controls on its citizens & institutions investing in overseas stocks, bonds, properties, hotels, movies, companies & all manner of bourgeois assets! Many billionaires & even ordinary citizens previously kena hot soup becoz of this.

Unknown said...

You DO realise that Visa & Mastercard & even Amex have ALREADY been granted licenses in China and you can use them in major chinese cities?!?!

Problem is most chinese don't like to accept them ... Except at expensive 5-star establishments serving foreigners & expats.

Eric Ho said...

You really don't know what you are talking about.

Visa and Mastercard are able to be used in China because they have to partner with local unionpay to process the RMB transactions.

Mastercard applied in Jan 2019 for a bankcard clearing licence so that it could process the RMB transactions independently in China. Without this licence, Mastercard will have to share the transaction fee with unionpay. You get it now? Therefore, it is not like what you have said that Visa and Master have written off China.

FYI, China is not the one begging for foreign funds like what you've said. The western countries are the ones lobbying China to open up its financial market because China has a big untapped market worth trillions due to the high saving rates.

The Chinese don't like to use credit cards because they're used to pay everything in cash. However, this habit has started to change because of online payment applications. This is a unique situation because China has an older generation that bypasses computer usage.

Eric Ho said...

https://www.channelnewsasia.com/news/business/us-treasury-says-no-plans-to-block-chinese-listings--at-this-time---bloomberg-11953286

No blockage of Chinese listings in the US as stated by US treasury.