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Rubio introduces new anti China proposal

After a flurry of activity this past summer, there have been few developments in the battle over Chinese companies listed in the US. Ant has proposed the largest IPO in history in Hong Kong which may have partly been because of the uncertainty in US markets. But other IPOs have continued, even during the virus-related shutdowns.

I don’t expect anything to happen in the next few months, even if Trump wins reelection.

This week Senator Marco Rubio introduced some new legislation – the American Financial Markets Integrity and Security Act which purports to delist Chinese companies that are Communist Chinese Military Companies and to forbid SEC registered funds from investing in these companies. It would also revoke the tax-exempt status of pension funds that invest in these stocks.

Rubio introduced the Equitable Act to delist Chinese companies whose auditors could not be inspected by the PCAOB. For reasons that appear to relate to internecine conflicts in the Republican party a similar bill by Senator John Kennedy was instead passed by the senate but has not been enacted. Rubio’s Equitable Act has gone nowhere, and I expect that is the fate of this bill.

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