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Daily Outlook: SEC suspends IPOs of Chinese companies until the risk disclosure is more complete


The U.S. Securities and Exchange Commission suspends IPOs of Chinese companies until the risk disclosure is more complete:

In view of the recent rectification actions taken by the Chinese government against private companies, the US Securities and Exchange Commission (SEC) has suspended initial public offerings (IPOs) of Chinese companies until they disclose more information about the investment risks faced by shareholders. SEC Chairman Gary Gensler said that the recent actions taken by the Chinese government, including announcing the strengthening of security reviews for companies that go public overseas, have "realistic significance for American investors." He said that he has asked SEC employees to request the Chinese company to disclose more information before approving the registration documents for the stock issuance.


China seeks to communicate more with the U.S. on the supervision of overseas IPOs of Chinese companies:

After the U.S. Securities and Exchange Commission (SEC) suspended the initial public offerings (IPOs) of Chinese companies, Chinese securities regulators sought to negotiate with the United States. The China Securities Regulatory Commission stated on Sunday that it had noticed the relevant statement of the US Securities and Exchange Commission, especially the new requirements on the disclosure of listing information; the regulatory authorities of the two countries should continue to uphold the spirit of mutual respect and win-win cooperation. Strengthen communication on stock supervision issues and find a proper solution.


The Senate initiates a debate on the $550 billion infrastructure bill, which may be passed by a vote next week:

The U.S. Senate may pass a bipartisan $550 billion infrastructure bill next week. After weeks of intermittent negotiations, the bill was officially launched for debate on Friday. The Senate passed 66 votes to 28 to initiate the debate, reflecting the broad bipartisan support for the bill. However, lawmakers failed to complete the goal of finalizing the text of the bill on Friday afternoon, and the debate on the amendments will continue for several days, which means that the final vote on the bill will not be possible until the weekend of next week.


Kashkari of the Federal Reserve: Delta mutant virus may hinder the recovery of the US labor market:

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said that the spread of the delta mutant strain of the new crown virus may prevent some Americans from looking for work and may harm the economic recovery. "I was very optimistic that the labor market will be strong in the fall and many Americans will start working again. This is still my basic forecasting scenario," he accepted on CBS's "Face the Nation" program on Sunday. Said in the interview.


In the United States, personal spending increased in June, and inflation indicators continued to climb:

In the United States, personal spending grew faster than expected in June, reflecting the increase in service spending; the closely watched inflation indicator also continued to rise. Data released by the US Department of Commerce on Friday showed that purchases of goods and services increased by 1% month-on-month; May data was revised down to a month-on-month decline of 0.1%. The personal consumption expenditure price index against the Federal Reserve's inflation target rose 0.5% month-on-month for the second consecutive month.


The Eurozone emerged from economic recession in the second quarter. Southern European countries have rarely become the main growth drivers:

The economy of the euro zone has got rid of the impact of the winter anti-epidemic blockade, and the strong rebound in Spain and Italy prompted better-than-expected economic growth in the second quarter of the region. The Eurozone GDP grew by 2% in the second quarter, surpassing the 1.5% forecast of economists surveyed by Bloomberg. Southern European countries are the driving force of the rebound and have rarely become the engine of economic growth in the Eurozone. Growth in Germany, the euro zone's largest economy, was lower than expected because supply chain disruptions put pressure on key industries such as automakers.


The stress test of the European banking industry shows that the overall capital situation is improving. Deutsche Bank and Societe Generale are weak:

In the latest round of stress tests conducted by large European banks, Deutsche Bank and Societe Generale Bank performed the weakest. European regulators will refer to the test results when considering banks' dividend plans. Under an unfavorable scenario, Deutsche Bank’s common stock Tier 1 capital ratio (CET1, one of the most important indicators of financial strength) fell 620 basis points to 7.4%; this scenario assumes that interest rates remain low for a long time and the economy continues to shrink deeply. year. Societe Generale’s ratio fell by 562 basis points to 7.5%.


Russian Deputy Prime Minister: OPEC+’s 400,000 barrels/day increase in output is sufficient:

Russian Deputy Prime Minister Alexander Novak told reporters in Moscow that OPEC+’s 400,000 barrels per day increase in output since August is very sufficient. Russia's crude oil production will reach the level of 10.5 million barrels per day before the outbreak of the epidemic by May 2022.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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