China Capital Markets Research

In a sign of increasing tensions between the U.S. and China in the financial sector, the Nasdaq is tightening scrutiny of small Chinese companies' IPOs. These firms usually raise most of their capital from Chinese investors rather than American ones. The shares of these companies tend to trade thinly once they've gone public, limiting their appeal to large institutional investors - on whose interests the Nasdaq focuses.

Recent reports in the U.S. media have described the Trump administration mulling a plan that would involve the delisting of Chinese firms from U.S. stock exchanges. The Trump administration has denied the reports, while political heavyweights such as Senate Majority Leader Mitch McConnell have dismissed the idea outright. McConnell told CNBC that the Treasury Department made clear it does not favor delisting Chinese firms from U.S. stock exchanges.

Can Shanghai’s new NASDAQ-style exchange really become a NASDAQ and can Shanghai become New York?

The United States is not the only major economic power turning cold on Chinese investment. Now the European Union, China's largest trading partner, is having second thoughts of its own about allowing China to buy up its prime manufacturing and high-tech assets. Concern amongst the EU's heavyweights, including Germany, France and the United Kingdom, is significant, analysts say. While weaker states in the EU, notably Greece, continue to welcome Chinese investment, they are increasingly in the minority.

One morning in July, investors of Niubanjin Finance, a P2P platform with balance of 39 billion RMB at that time, tried to check their balance online, but only saw a system maintenance notification. They started feeling anxious and visited the local office in Hangzhou, only to find that the office had closed, and two policemen there to record their investment information, as proof of victims.

More and more Chinese individuals have accumulated a great amount of wealth thanks to the country’s economy boom in the past decades. As a result, the demand of wealth management is growing. With the help of new technologies, mobile wealth management (MWM) platforms are attracting more and more investors in China recently.

President Trump’s latest controversial policy of imposing tariffs on the EU, Canada and China has shook global trade. With around $34bn worth of tariffs on Chinese goods (with more tariffs proposed), he aims to reduce the US’s trade deficit with the hope that American consumers will buy less Chinese goods and more American goods, thus increasing net exports and GDP. However, China has retaliated with its own tariffs against the US (worth the same amount). It is clear that neither side wants to back down first so who will win this trade war?

On April 29th, the CSRC (China Security Regulatory Committee) officially released the Administrative Measures for Foreign-Invested Securities Companies.

China's recent outbound M&A has been suffering with more and more acquisitions failing due to national security concerns, Ant Financial's missed acquisition of MoneyGram being the latest. Why does national security factor into these decisions and why will it remain a crucial consideration in the future?

Two weeks after the 19th Communist Party of China (CPC) national congress, the Chinese state council set up the Financial Stability and Development Committee (FSDC), as the institution to ensure the stability of the financial system and provide solutions for future development.

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