The united states rejected a proposed merger between the Chicago mercantile Exchange and a Chinese-linked group of investors.
The decision comes after more than two years, of the examinations by the officials.
The tie-up was first approved by the Committee on Foreign Investment in the united States, pending the result of the approval by the Securities and Exchange Commission (SEC).
But WE, the politicians, including the President Trump, have said to let a Chinese company investing in a us stock market was a bad idea.
According to the proposal, the Chinese-led North America Hosted Holdings group would have purchased CHX Holdings, which owns the Chicago mercantile Exchange.
The exchange, which occupies only 0.5% of the u.s. stock market trades, had said the case would have provided the exchange with the bulk of the capital”.
The funding has been used to stimulate many initiatives designed to benefit the city of Chicago, the economy and the structure of the market as a whole”.The Issues raised
While the investment has achieved a preliminary vote of approval by the staff of the SEC in August 2017, the commission ultimately decided that the operation does not comply with the rules that will govern the exchanges.
“The review process has also raised questions as to whether the proposed ownership structure will enable the board to exercise sufficient oversight of the exchange,” the SEC said Thursday.
The SEC decision follows several other moves by us authorities to discourage Chinese companies to do business in the united states, or in partnership with american companies to sell their products in the country.
In January, China’s telecom giant Huawei has said that he had been unable to find an agreement to sell its new smartphones through a U.S. carrier, largely AT&T.
Also, earlier this year, the united states also blocked an amount of 1.2 billion euros (Â£880m) a sale of the company’s money transfer Moneygram China Ant Financial, digital payments arm of Alibaba.
He was the highest-profile Chinese face to be rejected by Washington since Donald Trump came to power.
AMERICAN politicians who were opposed to the exchange to process the said they applauded the decision.
“It has been a long fight, and I am grateful that we now have a president who recognizes the threat to national security, authorizing a Chinese government-affiliated company of the Chicago mercantile Exchange,” the Republican congressman Robert Pittenger, said in a statement.