US grows wary of China flotations

[Eugene]

Last Updated: Friday, 12 August 2005, 09:26 GMT 10:26 UK

US grows wary of China flotations

Chinese firms planning to sell shares in the US could spark an asset
bubble to rival the dot-com crash, a key panel of the US Congress has
warned.

Richard D'Amato, chair of a commission advising on economy and
security, told a Congressional hearing that investors needed to be
aware of the risks.

<snip>

Mr D'Amato's US-China Economic and Security Review Commission was a
key opponent of CNOOC.

Loan risk

In this case, though, the focus of Mr D'Amato's concerns is the use
of the US stock market to raise money for Chinese corporations.

In particular, he said, he was worried about the mountain of bad debts
believed to be held by Chinese banks wanting to float on Wall Street -
and the institutions' lack of transparency.

http://news.bbc.co.uk/2/hi/business/4144442.stm

[bemildred]

1. Silly Chinese, only US firms are allowed to do that. nt

[Deja Q]

2. US politicians support US corporations who trade with the enemy.

Our corporations have engaged in treason thanks to Nixon opening up china. (don't give me the humanitarian sob story; repukes and corporate elite would have used china in the end.)

The US should feel wary of nothing. China is their friend. Just how Iraq was 20 years ago...

Didn't we sell Osama weapons at one point too? Ironically to get rid of more commies?

[Robert Oak]

3. Interesting

But this issue sounds incredibly complex.

Anyone have an Academic study or a very long detailed article on the consequences?