According to the latest data, the number of newly placed shares of Chinese companies on the New York Stock Exchange, as well as on the NASDAQ, has doubled during the current year.
The total amount raised by China's companies through the IPO was about $2.9 billion, which was 30% higher than last year's figure. Some economists think that this is just the beginning. If the securities of the largest company in the financial and technological sector Lufax appear on the US stock exchanges, the total investment volume may spike up.
Chinese companies are gradually entering American stock markets, even though the tensions between the United States and China are growing. The conflict between the world's two largest economies continues to escalate and the watchful eye of US financial watchdogs cannot miss the situation on the stock markets.
When the US ordered to close several Chinese embassies and China shut down American consulate in a tit-for-tat response, the major indices were set on fire. Most of them incurred serious losses. The US shut down the Chinese consulate in Houston, while China closed the US embassy in Chengdu.
The conflict between the two countries began to intensify after the Luckin Coffee fraud scandal. Chinese company Luckin Coffee deliberately inflated sales for the past year. An internal committee discovered fraudulent transactions totaling $310 million. After the incident, the US authorities urgently have adopted a bill that obliges companies from China to carry out the procedures necessary for switching to American audit standards.
It is not an easy thing for a company to be listed on the NASDAQ exchange. Chinese companies JD.com and NetEase made several billion-dollar securities listings just to enter the US market.
Wall Street has always been a mecca for the world's largest companies. No wonder, so many foreign corporations want their securities to be traded on the US stock market. This year, nineteen companies from China have already been listed on American stock exchanges compared to only nine last year. It seems that the geopolitical struggle takes a back seat when it comes to economic benefit. The main advantage of the US exchanges is a bigger turnover. Thus, the chances of repeated and subsequent placements of securities are much higher than on other equity markets. Besides, Wall Street is the place with a history that is respected by all market players around the world.
