Exchange-traded funds that allow investors to bet on Chinese companies were knocked lower midday Wednesday after the U.S. Senate approved sweeping new legislation that could ultimately bar many Chinese companies from listing shares on U.S. exchanges. The Invesco China Technology ETF (CQQQ), which offers exposure to a basket of popular Chinese technology firms that are listed in the U.S., including the American Depositary Receipts of Baidu Inc., (K3SD.SG), was down 0.7%; those for KraneShares CSI China Internet ETF (KWEB), which offers exposure to Alibaba Group Holding Ltd. (9988.HK) and JD.com (JD), was trading 1.4% lower, at last check, according to MarketWatch's website. The Global X MSCI China Consumer Discretionary ETF (CHIQ) was down 1% on Wednesday, with that ETF also tracking Alibaba and JD.com. The Senate bill ( ), if it is written into law, would The bill would require Chinese companies to establish that they aren't owned or controlled by a foreign government. Furthermore, they would be required to submit to an audit that can be reviewed by the Public Company Accounting Oversight Board, the nonprofit body that oversees audits of all U.S. companies that seek to raise money in public markets. U.S. stocks came off their highs of the session Wednesday afternoon following the passage of the bill, which comes amid increasing tensions between the U.S. and China, with representatives from the world's biggest economies fighting over Beijing's handling of the COVID-19 pandemic, which was first identified in Wuhan, China. Still, markets were holding onto solid gains, with the Dow Jones Industrial Average up 1.2%, the S&P 500 index climbing 1.4% and the technology-heavy Nasdaq Composite Index rising 1.7% Wednesday.
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 20, 2020 13:43 ET (17:43 GMT)
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