- Chinese companies listed on Wall Street will likely to be cut off from U.S. capital markets in the next three years as tensions between Beijing and Washington persist, according to David Loevinger from the TCW Group.
- He predicted that by 2024, most Chinese companies listed on U.S. exchanges are no longer going to be listed in the United States.
- Many of China's top internet companies listed in the U.S. have already undertaken dual listings in Hong Kong. Some high-profile names include e-commerce giant Alibaba, its rival JD.com, search engine giant Baidu, gaming firm NetEase and social media giant Weibo.
Chinese companies listed on Wall Street will likely to be cut off from U.S. capital markets in the next three years as tensions between Beijing and Washington persist, says one global asset management firm.
"I think for a lot of Chinese companies listed in U.S. markets, it's essentially game over," David Loevinger, managing director for emerging markets sovereign research at TCW Group, told CNBC Wednesday. "This is an issue that's been hanging out there for 20 years — we haven't been able to solve it."
TCW Group had $265.8 billion in assets under management as of Sept. 30, 2021, according to the company's website.
The U.S. Securities and Exchange Commission this month finalized rules to implement a law that would allow the market regulator to ban foreign companies listed in the U.S. from trading if their auditors do not comply with requests for information from American regulators.
The law was passed in 2020 after Chinese regulators repeatedly denied requests from the Public Company Accounting Oversight Board to inspect the audits of Chinese firms that list and trade in the United States.
Given the current level of distrust between the U.S. and Chinese governments, and with the bilateral relationship unlikely to improve anytime soon, there is "no way we are going to solve this in the next few years," Loevinger said.
