Extreme anti-China议员urges JPMorgan and Bank of America to abandon underwriting CATL's Hong Kong IPO.
U.S. House Select Committee on China-U.S. Strategic Competition Chairman Mullery called on Bank of America and JPMorgan to withdraw from underwriting the Hong Kong IPO of battery manufacturer Contemporary Amperex Technology Co. (CATL), which could be the largest IPO this year.
According to Bloomberg, Mullery said in a letter to JPMorgan CEO Jamie Dimon and Bank of America CEO Brian Moynihan that the two banks' involvement in the CATL IPO plan exposes themselves and their U.S. investors to "significant regulatory, financial, and reputational risks."
The letter stated that if the above banks are unwilling to immediately withdraw from the transaction, the congressional committee led by him will ask them to provide detailed answers to 21 questions regarding risk assessment, compliance agreements, and potential violations of U.S. laws.
Previously reported media said that CATL submitted its listing application to the Hong Kong Stock Exchange on the evening of February 11. According to the prospectus, seven banks including CICC, Goldman Sachs, Morgan Stanley, and UBS participated in the underwriting of this issuance. Representatives of Bank of America and JPMorgan declined to comment. A spokesperson for CATL did not immediately respond to requests for comment.
Data compiled by Bloomberg shows that last year's initial stock sales in Hong Kong raised $11.2 billion, up nearly 90% from 2023. Bloomberg reported that CATL's Hong Kong IPO may raise at least $5 billion. First-quarter stock underwriting revenue for both JPMorgan and Bank of America fell year-over-year. Uncertainty caused by tariff conflicts is hampering equity sales activities in the U.S. and Europe, with most potential initial public offerings (IPOs) being postponed due to market volatility.
Source: https://www.toutiao.com/article/1829669587181577/
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