The Senate Republicans are asking Gary Gensler, the SEC chain personnel, to investigate the Chinese Companies that are listed in the US stock exchanges after the American investors suffered from a surprise investigation on their Companies by the government officials of China.
Several of the GOP lawmakers that Sen. Dan Sullivan of Alaska leads are also asking the chairman to scrutinize the underwriters involved in the US initial public offering of the Chinese Companies.Also, the probe would examine the index providers that consist of Companies and their products. As a result, the senators have been pushing the SEC to take action.
The senators include Kevin Cramer (R-N.D.), Rick Scott (R-Fla.), Tom Cotton (R-Ark.), Marsha Blackburn (R-Tenn.), Sens. John Kennedy (R-La.), and Bill Hagerty (R-Tenn.). Further, the shares of the same company took a nosedive in the beginning of this month when the regulators of China stopped downloads of the apps stating the concerns of cybersecurity issues.
The lawmakers stated that the company executives had downplayed the risk of regulation from the Chinese government before going public. They also believe that the episode is a major highlight of the troubling trend of Chinese Companies that are taking advantage besides ignoring the much-needed transparency needed to be under US law.