News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
US Listed Chinese Stocks Drop on Senate Passing Oversight Bill

US Listed Chinese Stocks Drop on Senate Passing Oversight Bill

Thomas Westwater, Analyst

US-China Relations, Chinese Stocks, USDCNH, Senate Oversight Bill – Talking Points:

  • The Senate passed a bill aimed at increasing oversight on Chinese stocks listed on U.S. exchanges
  • Alibaba and other U.S. listed Chinese stocks turned lower as news crossed the wires
  • The Chinese Yuan remains weaker on souring Sino-U.S. relations amid the COVID-19 pandemic

The US Senate cleared new legislation Wednesday, aimed at increased oversight of Chinese companies listed on U.S. stock exchanges. Introduced by Republican Senator John Kennedy, the bill, Holding Foreign Companies Accountable Act, would require Chinese securities to be delisted after three consecutive years of not undergoing an audit from a registered public accounting firm. Chinese stocks listed on U.S. exchanges, such as Alibaba, reacted negatively to the news and is currently 2% lower in afternoon trading.

ALIBABA – BABA (1-MIN CHART)

BABA stock US Senate BIll

Chart created in TradingView by Thomas Westwater

Increasing tensions between the United States and China scaled back after the signing of the phase-one trade deal back in January. However, the COVID-19 pandemic has seemingly reawakened tensions between the two countries, as President Trump continues to take aim at China over their handling of the coronavirus.

USDCNH (Daily Chart)

USDCNH reacts to US Senate BIll

Source: IG Charts

USDCNH price action may reflect the recent breakdown in relations. The currency pair’s price level remaining above the 7.000 mark, a psychological level for judging turbulence in Sino-US relations, but also a level the PBOC has defended in the past. Trading above the mark represents a metaphorical signal in the souring relationship, as China’s PBOC has set a stronger than expected fixed rate for the Yuan in previous weeks.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES