US House Committee Urges BofA & JPM To Abandon Chinese Firm’s IPO Deal
“If JPMorgan and Bank of America proceed with this IPO, they risk complicity in underwriting genocide, undermining American industry, and endangering U.S. service members,”
Chairman John Moolenaar of the House Select Committee on China urged JPMorgan Chase CEO Jamie Dimon and Bank of America CEO Brian Moynihan to withdraw from the Chinese battery giant Contemporary Amperex Technology’s (CATL) initial public offering (IPO) in Hong Kong, citing “serious national security threats and due diligence failures.”
“If JPMorgan and Bank of America proceed with this IPO, they risk complicity in underwriting genocide, undermining American industry, and endangering U.S. service members,” Moolenaar stated in a press release, referring to the letter he sent the heads of JPM and BofA.
He continued: “The letters outline serious national security threats and due diligence failures. The company’s reported aggressive pursuit of the CATL deal, despite its low fee structure and their defense ties, adds to concerns over risk and regulatory oversight,” adding, “As Chairman, I am closely monitoring how major financial institutions engage with companies linked to the Chinese Communist Party. The House Select Committee on China is actively examining these relationships, and we urge JPMorgan and Bank of America to prioritize national security and human rights in their decision-making.”
Moolenaar emphasized that CATL was designated as a “Chinese military company” under Section 1260H of the National Defense Authorization Act earlier this year.
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JPM and BofA’s potential participation in the HK IPO “directly aids the Chinese Communist Party’s military buildup and ongoing human rights abuses,” the chairman of the House Select Committee on China warned.
Moolenaar noted that CATL has ties “to the Xinjiang Production and Construction Corps (XPCC)—a sanctioned paramilitary entity involved in the genocide of Uyghur Muslims—and its role in modernizing China’s submarine fleet with advanced lithium-ion batteries.”
According to public trade data compiled by counterparty and supply chain risk intelligence firm Sayari, CATL is 1 to 3 hops away from entities with “high” to “elevated” forced labor concerns
Public data shows that Tesla is a major buyer of lithium-ion batteries from the Chinese entity.
Well ahead of the incoming US crackdown on CATL, we asked back in August 2024: “Is Tesla At Risk From Marco Rubio’s Push to ‘Blacklist’ Chinese Battery Firm CATL?”
Is Tesla At Risk From Marco Rubio’s Push to ‘Blacklist’ Chinese Battery Firm CATL?
— zerohedge (@zerohedge) August 28, 2024
Followed by this note at the beginning of the year.
Exposed To China Stocks? Goldman Assesses Potential Implications On Tencent Blacklist By Pentagon
— zerohedge (@zerohedge) January 8, 2025
Just a warning to investors: some in the Trump administration are very serious about the “nuclear option” on delisting Chinese stocks.
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(SOURCE)
Header featured image (edited) credit: Org. post content. Emphasis added by (TLB)
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