Wall Street Keeps Pushing Into China as Washington Balks
Bloomberg News
Updated on December 4, 2020
A year into China’s big bang opening of its financial markets, Wall Street has ever more to lose from a growing consensus in Washington over reining in Beijing.
It’s a risk they’re willing to take.
A star-studded cast of global banks and fund houses have increased their presence in China this year and a record $212 billion of foreign funds have poured into Chinese bonds and stocks. Alongside have come a myriad of measures from Washington aimed at decoupling the U.S. from China, an issue that’s drawn bipartisan support given widespread alarm about the Asian nation’s rising influence in global affairs.
The latest U.S. salvo was fired on Wednesday with the passage of legislation that could lead to Chinese companies — including behemoths like Alibaba Group Holding Ltd. — getting kicked off American exchanges. The turbulence hasn’t swayed global finance from the opportunity to capture a share of profits that are estimated to swell to $47 billion in investment banking alone by 2026.
