The Chinese overlords have to wait just a little bit longer

Discussion in 'Wall St. News' started by Pekelo, Feb 16, 2018.

  1. Pekelo


    "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."

  2. Here4money


    Smells of politics.... I'm not sure I trust the new SEC head
    zdreg likes this.
  3. tommcginnis


    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.
    Last edited: Feb 16, 2018
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  4. 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?
    ET180 and tommcginnis like this.
  5. tommcginnis


    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.

  6. Banjo


    Two things are, will eat the world, China and blockchains.
    tommcginnis likes this.