ABSTRACT

U.S. Capital Markets and China: Issues for Congress [April 5, 2021]   [open pdf - 493KB]

From the Document: "Financial ties between the United States and China have expanded significantly over the past few years. The government of the People's Republic of China (PRC or China) has created limited openings in China's debt and equity markets, while China's firms have sought access to U.S. capital, debt, and private equity markets. The Rhodium Group estimates that, as of December 2020, U.S. investors held $100 billion of Chinese debt and $1.1 trillion in Chinese equities, while Chinese investors held $1.4 trillion in U.S. debt and $720 billion in U.S. equities. Many U.S. investors see growth opportunities in Chinese stocks and other financial investments. Some Members in Congress have raised concerns, however, that U.S. investments may fund certain Chinese firms and activities that are tied to the state and efforts to advance China's industrial, military and other goals. Congress passed the Holding Foreign Companies Accountable Act (P.L. 116-222) to address its concerns about the lack of compliance by PRC firms with the U.S. Security and Exchange Commission's (SEC) statutory audit requirements. Chinese firms appear to use complex structures that may obscure risks, state ties, and other corporate details, complicating the effectiveness of U.S. government oversight and U.S. investors' legal recourse."

Report Number:
CRS In Focus, IF11803
Author:
Publisher:
Date:
2021-04-05
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations