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Regulatory points not lowering demand for Chinese listings

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Stacey Cunningham, president of the New York Stock Exchange, talking on the World Economic Forum in Davos, Switzerland, Jan. 23, 2020.

Adam Galasia | CNBC

The New York Stock Exchange continues to be seeing demand from Chinese firms trying to record within the U.S. regardless of extremely publicized regulatory considerations, NYSE President Stacey Cunningham advised CNBC.

Relations between Washington and Beijing have grow to be more and more fractious lately, with President Donald Trump’s administration pushing to cut back home monetary ties with the world’s second-largest financial system.

Speaking to CNBC’s Karen Tso on Tuesday night time, Cunningham stated the NYSE was persevering with to see demand from Chinese firms for U.S. inventory market listings.

“What is really important is that we make sure we are appropriately setting a framework in place that keeps investors protected,” Cunningham stated.

“We continue to see investor demand for Chinese companies in the U.S., and we haven’t seen that changing yet, despite the fact that there is a lot of talk about trade and about oversight, so we are working constructively and we are optimistic that we will be able to find a way to actually enhance the level of protections that exist on companies here in the U.S.”

Half of cross-border preliminary public choices within the U.S. within the first 9 months of the yr got here from China, in line with Ernst & Young, regardless of Senate laws in May that might delist a number of Chinese firms from American exchanges.

Ant Group and the regulation query

Regulatory considerations round Chinese listings returned to the general public eye final week after the last-minute suspension of Ant Group’s anticipated report $34.5 billion IPO in Hong Kong and Shanghai.

The Shanghai Stock Exchange stated Ant Group had reported “significant issues such as the changes in financial technology regulatory environment,” in line with a CNBC translation of the assertion from Mandarin.

Without commenting on the case, Cunningham stated there was “a lot of dialogue around how Chinese companies list here in the U.S., as well as what Shanghai and Hong Kong are doing.”

Cunningham emphasised the significance of retaining the depth and liquidity provided by the U.S. market by balancing audit oversight and different investor protections with entry, and “not encouraging other companies to go to other global markets.”

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