ASA Letter to WSJ: Real Audits for Chinese Firms Listed in the U.S.
The Journal's editorial from December 16th misses the mark on the Holding Foreign Companies Accountable Act.
By Christopher A. Iacovella
The American Securities Association shares the editorial board’s concern regarding the growth of the administrative state and the suffocating effect needless bureaucracy can have on economic growth. But your editorial “Congress Punts on China Stocks” (Dec. 16) misses the mark on the Holding Foreign Companies Accountable Act, a bill that passed both chambers of Congress unanimously despite a multimillion dollar lobbying campaign against it from Wall Street.
The narrative that money will flow to Chinese companies regardless of this bill rings hollow. Money managers are subject to a fiduciary obligation that prevents them from investing in companies they can’t perform due diligence on, such as those controlled by the Chinese Communist Party. In a politically charged year when Congress can’t agree on anything except naming post offices, Sen. John Kennedy, Sen. Chris Van Hollen and Rep. Brad Sherman should be applauded for taking a stand to end China’s fraud perpetrated on America’s mom-and-pop investors and markets.
This Letter to the Editor was submitted by American Securities Association CEO Chris Iacovella and appeared in the Wall Street Journal on Monday, December 28th. To view the full article at WSJ.com, click here.
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