Home Business U.S. lawmakers will question China’s role in the GameStop pump – Kindesk

U.S. lawmakers will question China’s role in the GameStop pump – Kindesk

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U.S. lawmakers are ready to question Keith Gill, a businessman, and his role as chief executive at Reddit and Robinhood. Gamestop insanity At a congressional hearing this weekend, however, some are again concerned: whether China is involved.

Several Republican lawmakers from the House Financial Services Committee have said they plan to investigate Reddit’s relationship with Chinese tech giant Tencent and Robinhood rival Momo. Politico Report. Momu a Fully owned A subsidiary of Futu Holdings, which also supports Tencent.

These Republicans are reportedly concerned about possible manipulation by Chinese companies to increase Gamestop’s stock through trading app Robinhood and some Reddit Day traders.

It is not clear from the report why these lawyers want to investigate these Chinese firms and what specific questions they want to ask during the hearing on Thursday. Announcement Rep. Presiding over the committee. Maxine Waters, (D-California).

However, the gamestop hearing comes at a time like this Technology nationalism The United States and China are running high. Policymakers have imposed – or tried to impose – Limitations Which accelerates the decoupling of digital platforms, supply chains and knowledge networks.

“We live in a time of increasing competition between Chinese tech and so-called Western tech,” said James Cooper, associate dean of the Western School of Law in California, who was a consultant to the U.S. State Department and advised on emerging technology. .

He said he was investigating whether corrupt Chinese actors had manipulated the price of gamestops as a “political theater”. Tencent and Momu did not respond to requests for comment as of press time.

China focus

Excluding the political theater, there could be several reasons why these lawyers are looking at China. One is that Chinese retail investors are likely to be interested in jumping into the gamestop stock frenzy. The other is the continued influence of Chinese-owned trading apps in the United States

China has something 167 million Retail investors under the total market value of the Chinese stock market (about 200 200 billion). Chinese retail investors are able to trade gamestop stocks through Chinese online brokerage platforms with US broker licenses such as Momu and Webul. Both Momu and Weble are founded by Robinhood’s main competitors in the United States, former employees of Tencent and Alibaba, respectively.

Became webull The second most popular The application in the United States comes at a time when online brokerages are barred from buying GameStop and AMC Entertainment stocks. The failed response due to the limitations of Robinhood’s business is that both Web and Momu have become alternative platforms for Robinhood investors.

Webbl began offering business services for cryptocurrencies in 2020. Compared to last year, it has increased the broker’s clients to more than ten million users. Although its current user base is shaken by Robinhood’s 13 million, Webb says it is cutting users off from its competitors, according to A report Bloomberg Businessweek.

Read more: Tiktok and the Great Firewall of America

Retail investors were present Turned Webb after closing certain stock trades run by Reddit Group, including Robinhood GameStop. However, the web later shut down the transaction, claiming that its clearing firm had asked it to close new positions on certain shares.

Lawmakers’ concerns about Reddit’s relationship with Tencent could begin with this $ 300 million During the series de-funding in February 2012, when the Chinese company invested $ 150 million as the main investor.

Tencent’s funding soon drew criticism from Reddit users who prioritized privacy and decreed censorship. However, some Analysts Believe that Tencent will be able to control the content on the platform

Robinhood’s rival

Futu Inc. to expand its business in the United States at the top of Futu’s success in mainland China, the San Francisco-based Momu. Part of its effort. Founded by Hua Li, who was one of Tencent’s early employees in 2012, Futu is one of China’s largest online brokerage platforms and allows mainland China’s retail users to trade in Hong Kong and US-listed stocks.

Futu Inc. A broker-dealer registered with the U.S. Securities and Exchange Commission and a member of both the Financial Industry Regulatory Association and the Securities Insurance Protection Corporation (SIPC), said in a statement on its website.

Futu Score One of the largest Asian primary public offers of 2019 on Nasdaq and aims to be a major player in online brokerage services for retail investors worldwide.

According to the Securities and Exchange Commission, Lee Furti has 40.2% equity with Futur’s ut1.2% vote share, while Tencent has 30.3% share of the firm with 26.2% vote share. Filing Dated April 27, 2020.

Webbel Fumi Technology is a subsidiary of Alibaba’s former Ankan Wang founded in 2016 in Hunan, China.

While Weble follows the same rules as other U.S. brokerages and stores user data locally, Bloomberg reports that it has an office in Lower Manhattan, Bloomberg reports.

Webb voluntarily sought a review of the Foreign Investment Committee’s (CEFIAS) ownership in the United States, a panel that barred several Chinese-owned companies from expanding into the United States because of national security, the agency’s chief executive, Anthony Denier, said in the report.

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