THE People's Bank of China (PBOC) said it would step up adjustments to counter its slowing economy to ensure there is 'adequate liquidity' for the financial sector by opening more sectors of the economy to foreign investors, reports the UK Guardian
THE People's Bank of China (PBOC) said it would step up adjustments to counter its slowing economy to ensure there is 'adequate liquidity' for the financial sector by opening more sectors of the economy to foreign investors, reports the UK Guardian. Recent economic data has shown that China's economy is suffering from Washington's imposition of tariffs on over half its exports to the US. Factory output growth has hit a 17-year low, and car sales have fallen in 14 of the last 15 months, said the report.
Commerce Minister Zhong Shan told a news conference that the trade dispute is causing unprecedented challenges. Shares in Alibaba Group, the Chinese e-commerce company, tumbled five per cent, after the plan was reported.
According to US Government insiders, this could include preventing Chinese companies from listing on the US stock market. Curbing the ability of US Government pension funds to buy Chinese equities is also being considered, according to government insiders.
The prospect of Chinese companies being barred from US exchanges alarmed Nasdaq, which warned that the move could hurt investors, said the Guardian report.
Said Nasdaq: 'One critical quality of our capital markets is that we provide non-discriminatory and fair access to all eligible companies. The statutory obligation of all US equity exchanges to do so creates a vibrant market that provides diverse investment opportunities for US investors.'
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