To prevent the funding of malign activities of the Chinese Communist Party though the sale of A-Shares on certain securities exchanges controlled by the Chinese Communist Party by prohibiting the purchase, sale, and ownership of such securities by United States investors, and for other purposes.
About This Bill
Committee
Latest Action · June 18, 2024
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
This bill would prohibit U.S. investors and businesses from buying, selling, or owning securities listed on major Chinese stock exchanges, specifically the Shanghai, Shenzhen, and Beijing exchanges, as well as any derivatives or investment products tied to these securities. The bill applies to all U.S. persons, including individual investors, banks, investment firms, pension funds, and insurance companies. Anyone currently holding these securities would be required to sell them within 180 days of the law's enactment. Violations would result in civil penalties up to $250,000 or twice the transaction amount, with criminal penalties reaching up to $25 million for organizations and up to 20 years in prison for individuals acting in a professional capacity. The legislation is based on national security concerns, arguing that U.S. investment capital flows to Chinese military companies, supports human rights abuses, and funds activities contrary to American interests. The Treasury Department would be required to report to Congress 90 days after enactment, again at 180 days, and then every six months thereafter on the effectiveness of the prohibition, along with an annual report on all U.S. portfolio investments in China.
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