Key Reasons why US Passes bill to tighten the listing process
- US Senate passes a bill to tighten a grip on Chinese companies in order to curb the entry in American Markets to raise capital.
- Investors lack of transparency in Chinese companies listed in US, as these companies does not allow US audits on entry.
- This will bring back some transparency in the system and may trigger delisting of Chinese Companies.
- Stocks markets tumbled with this reason on Thursday in US.
- Another reason is 38 million unemployment claims have been made in U.S. due to corona virus pandemic.
- Asian Markets are weak on the back of these negative developments.
- SGX is in negative territory.
- Wall Street tumbled as the investor fears that trade tension between US & China will increase. On Wednesday, U.S. Senate passes a bill that will put some restrictions on Chinese companies to enter in US. As this bill will disallow those companies that wont allow the US audit while listing on US exchanges. China does not allow US audit for the companies registered in China and Hong Kong . This leads to lack of transparency.
- A latest report in U.S. revealed that total of 38 million Americans have applied for unemployment claim. Showing pain in the economy.
- Dow Jones Industrial Average declined by -101.78 points, or -0.41%, close at 24,474.12.
- The S&P 500 seen downside of -23.10 points, or -0.78%, ends at 2,948.51.
- Nasdaq Composite Index decreased by -90.90 points, or -0.97%, close at 9,284.88.
Asian Markets In Morning
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Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 9100 level. Today strategy is to look to short the market (Nifty Future) in case you get any rally. Short the market at 9150 level and look for target 9000 level.
- Read this article to build long term portfolio of Nifty 50 stocks: