This time, however, it’s clear the ground has shifted. Lawmakers haven’t been receptive to suggestions that the legislation should only impact companies seeking new stock listings, which would insulate businesses already trading in the U.S.
And the exchanges, according to three people familiar with the matter, haven’t been able to persuade the U.S. Chamber of Commerce to weigh in against the bill. The nation’s biggest business lobby sees little upside in opposing it.
In a statement, NYSE said that if the bill passes, the exchange hopes regulators implement the legislation in a way that “delivers investor protection based on transparency” and ensures it’s not just “a privileged few” who can buy shares of Chinese companies. Nasdaq declined to comment.
Tom Quaadman, executive vice president of the chamber’s Center for Capital Markets Competitiveness, said “it is important for the U.S. and China to come to agreement on these issues.”
For Wall Street, there’s also a view that they should save their ammunition for more important fights -- and there are many more likely coming. One piece of legislation that is especially troubling would punish financial firms for doing business with Chinese officials who are seeking to impose a sweeping security law on Hong Kong.
The bill, introduced last month by Van Hollen and Republican Pennsylvania Senator Pat Toomey, responds to criticism that China’s proposed law would curb freedoms in Asia’s financial hub. Bank lobbyists privately say that they fear the legislation would pass easily if it ever reaches the Senate floor.
This article was provided by Bloomberg News.