Exchange-traded funds that track the performance of Chinese companies stumbled Thursday as the House of Representatives considers a bill that could ban Chinese firms from listing on U.S. exchanges, after a similar bill passed the Senate unanimously Wednesday. The Invesco China Technology ETF (CQQQ) was down 2.7% in early trade Thursday, while shares of Global X MSCI China Consumer Discretionary ETF (CHIQ) shed 2.3% and KraneShares CSI China Internet ETF (KWEB) declined 1.8%. The bill would require that foreign companies let the Public Company Accounting Oversight Board oversee the auditing of their financial records if they want to raise money by selling stocks or bonds to the American public. All U.S. companies and most foreign firms already work with the PCAOB in this way, but Chinese firms do not. Some analysts predicted the bill could be swiftly approved as Congress looks to signal toughness toward China in an election year. Trump economic advisor Larry Kudlow told Fox Business Wednesday that the administration supports measures to increase oversight of Chinese firms, though the White House hasn't publicly stated an opinion on this particular legislation. Also under pressure were American Depository Receipts of Chinese tech giants Alibaba Holding Group Ltd. (9988.HK) and JD.com (JD). ADRs for another Chinese tech firm, Baidu Inc., (K3SD.SG) were up 1.2% after a Reuters report the firm was considering voluntarily delisting from the Nasdaq to boost its valuation.
-Chris Matthews; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 21, 2020 10:51 ET (14:51 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.