Market Update August 30th, 2021
Patrick Traverse CFP? EA CEPA?
Owner Founder at Breakaway Financial Group LLC
SEC Chief Warns ‘Clock Is Ticking’ on Delisting Chinese Stocks
What is it?
“Securities and Exchange Commission Chair Gary Gensler has a warning for hundreds of Chinese companies that have raised billions of dollars in U.S. markets: Submit to more scrutiny soon or get kicked out.”*
“In a Tuesday interview, he pledged to strictly enforce a three-year deadline that requires Chinese firms to permit inspections of their financial audits. If businesses refuse, their shares could be delisted from the New York Stock Exchange and Nasdaq as soon as 2024.”*
Why does it matter?
“The conflicts, which have festered for almost two decades, have come to the fore in recent months as the Chinese government reined in prominent companies that trade on American exchanges, causing massive drops in their share prices and rattling investors.”*
To be listed on American exchanges, there is a standard of reporting to be upheld. Chinese companies are failing to provide disclosure or transparency on potential risks of investing. This may lead to fewer investors and the delisting of such securities in the U.S. stock exchanges.?
Global stocks head lower ahead of Jackson Hole summit
What is it?
“Investors were erring on the side of caution on Thursday morning in London, as stocks and stock futures fell ahead of the Jackson Hole symposium which runs from later on Thursday and Friday. “**
"Because of the recent softening in economic growth, the Fed has already indicated that it may begin tapering before the end of 2021. Having said that, investors should anticipate a cautious tone from policymakers at this meeting."**
Why does it matter?
“The meeting of the world's central bankers should give investors a read on policy going forward, and attitudes to the economy in light of COVID-19 Delta variant caseloads.”**
“Inequality, recovery from the pandemic and climate change will also be in focus.”**
International stock markets are not all at record high prices like here in the U.S. With the world's central bankers meeting, we will get a feel for where countries are now and what their plans are for the future. A meeting like this could provide valuable insight on what the global economy will be like in the months or years to come.?
Other articles I found interesting this week:
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Sources:
*Robert Schmidt and Benjamin Bain. “SEC Chief Warns ‘Clock Is Ticking’ on Delisting Chinese Stocks”. 8/25/2021. Bloomberg.?
**Lucy Harley-McKeown. “Global stocks head lower ahead of Jackson Hole summit”. 8/26/2021. Yahoo Finance. https://finance.yahoo.com/news/jackson-hole-symposium-global-stock-market-26-august-ftse-cac-dax-sp-500-dow-jones-nasdaq-074432911.html
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