https://www.bloomberg.com/news/arti...ese-linked-takeover-of-chicago-stock-exchange "U.S. regulators rejected a bid by a Chinese-linked consortium to take over the Chicago Stock Exchange, extinguishing an ambitious dream of starting an international listing venue from a minuscule market. The Securities and Exchange Commission’s decision ends a process that lasted two years and took place in the crucible of a presidential campaign and a new administration that’s expressed skepticism over China’s policy motives. Now that it’s over, the exchange founded in 1882 is left handling less than 1 percent of daily U.S. stock trading, missing out on an audacious project to court smaller companies, particularly those based in China." Furthermore: https://www.bloomberg.com/news/articles/2017-03-09/chicago-wants-to-be-a-hub-for-china-stock-trading
I taught a course in economic systems back in the late 80s -- remember Tiananmen Square? And the Berlin Wall was coming down? Soviet Union breakup?? And Germany/reunification?? WOW. It was a perfect time to look at the past, and put pieces into the future..... But the thing about China -- as was played out in Tiananmen Square -- was that it was a Control Uber Alles kind of environment, and that the *freedom* of individuals and private ownership of capital and worse, perhaps, Shumpeter's Creative Distruction -- was totally *anathema* to the Chinese. "Chaos" meant death. (And indeed, to this day, capital crimes in China include acts deemed to lessen control, or unleash chaos.) So, there ARE NO stocks -- no shares of ownership -- owned on anything *inside* of China, by anyone *outside* of China. It's all ADR. It's all subject to immediate nullification, without recompense, by the Chinese government. "Poof!" So, I bought BABA at $88, and had fun for a couple of months, and sold in the $90s -- really wanted to have it for a while -- Love the idea, the placement, the CEO (Jack Ma is a superhero). But I don't OWN anything with the ADR. Now -- would I want the Chinese -- who care for state control over paltry individual property rights -- to be anywhere near the U.S. equity market, as an owner/operator?? No. I think that would be supremely unwise, unsafe, might as well let them buy the TELCO that maintains U.S.A.F phone lines.... Yuck.
Funny, I was thinking about a similar eventuality with Tencent extending an offer to buyout TWTR. Because what could US regulators have a problem with there in an election year for a Chinese company to control (one of) the premier news feed social media venues when we're concerned about the dissemination of misinformation to the american public?
Meh! There's a market for this sort of thing! Let's just ask [the early 70s] Roger Ailes if he could imagine any subject-to-market news provider dishing out anything but 'fair & balanced' info. https://www.washingtonpost.com/blog.../01/AG1W7XtH_blog.html?utm_term=.eb762e7f423e
Two things are, will eat the world, China and blockchains. https://www.mckinsey.com/industries...t-and-one-road-connecting-china-and-the-world https://www.mckinsey.com/industries...t-and-one-road-connecting-china-and-the-world