The Senate passed a bill that, as news reports have it, would require that any company traded on a domestic stock exchange establish that it is not controlled by a foreign government.  The bill is being framed as setting accounting standards to protect shareholders and guard against fraud.

My thoughts:

–most US investment disasters are home-grown.  Think Bernie Madoff, Enron, Michael Milken, Henry Blodget.  There are also cases like Moviepass or Blue Apron or Trump Hotels and Casino Resorts, where the major sin is ineptitude.

–the real intention is to deny China access to US capital markets, as well as to cast China as a villain, diverting attention from Trump’s tragic failure to deal with the coronavirus

–there’s a good chance the move will backfire.  The major effect of removing the US from the China equity equation will likely be to restore Hong Kong to front of mind for foreigners’ research and investment into the world’s larges economy.  Also, the more onerous US rules become, the more likely it will be that even investors of average means will begin to move funds abroad.