US House committee calls on JPMorgan, BOA to drop roles in mega HK listing of battery maker CATL
The chairman of a US congressional committee on China is calling on Bank of America (BOA) and JPMorgan Chase to withdraw from working on the Hong Kong first-time share sale of battery maker Contemporary Amperex Technology Co Limited (CATL), which could be the year’s biggest listing.
The two banks are exposing themselves and their American investors to “significant regulatory, financial and reputational risks” by underwriting CATL’s listing, House Select Committee on the Chinese Communist Party chairman John Moolenaar, a Republican from Michigan, said in letters addressed to JPMorgan chief executive officer Jamie Dimon and BOA CEO Brian Moynihan.
The two letters highlighted the inclusion of CATL, as the company is known, in a Pentagon blacklist in January, citing its alleged links to the Chinese military. US President Donald Trump’s America First Investment Policy memo also aims to deter Wall Street from steering American retail investors into funding CATL’s listing, according to the letters.
CATL, a major supplier to Tesla, has protested its inclusion in the US blacklist. While the blacklist carries no specific sanctions, it discourages firms from dealing with its members.
BOA shares rose 0.2 per cent on Thursday (Apr 17), while JPMorgan’s climbed 1 per cent. CATL’s Shenzhen-listed shares dropped 0.6 per cent in early Friday trade, with the benchmark CSI 300 Index down 0.4 per cent.
Source: Businesstimes
