After Didi losses, US lawmakers demand probe into Chinese companies on American stock exchanges
- Chinese investigation of Didi ‘conveniently occurred after the company was able to snatch billions of dollars from American investors,’ say Republican senators
- Lawmakers request inquiry into US-listed Chinese companies, the firms that underwrite their IPOs and companies behind indices with Chinese firms as constituents
Tom Cotton of Arkansas, Rick Scott of Florida and Alaska’s Dan Sullivan are among seven Republican senators pressing Securities and Exchange Commission (SEC) Chair Gary Gensler to initiate “robust” investigations of US-listed Chinese companies, the US financial firms that underwrote their initial public offerings and companies that compile stock indices with Chinese firms as constituents.
The timing of the Cyberspace Administration of China’s investigation of Didi, which is listed as Didi Global in the US, “conveniently occurred after the company was able to snatch billions of dollars from American investors”, the lawmakers said in a letter to Gensler on Wednesday, adding that penalties the company faces in China “means that these American dollars could be going directly into [Chinese Communist Party] coffers”.
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