US: Lawmakers push to block Chinese takeover of CHX

Eleven US legislators are urging regulators to block a Chinese takeover of the niche Chicago Stock Exchange (CHX), according to a letter sent on Monday.

The letter called on the Securities and Exchange Commission (SEC) to reject the sale of the small exchange to a group of investors led by the Chinese company Chongqing Casin Enterprise Group (CCEG).

“As you know, the Chinese government dominates all sectors of society and consistently fails to abide by international agreements,” they wrote.

And “given the ongoing concerns with the severe lack of transparency in China, we have substantial concerns related to the SEC’s ability to monitor and regulate owners of CCEG,” according to the letter signed by Republican and Democratic members of the House.

While foreign owners of a national stock exchanges historically have agreed to fully comply with US laws, CCEG and its foreign affiliates have failed to grant US regulators “power to monitor or regulate their activities” on CHX.

The SEC is expected to announce its decision by August 9.

Full Content: Reuters

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