Chicago Stock Exchange Discloses Information About Chinese Investors in Latest SEC Filings

By | Nov 29, 2016 11:19 PM EST
Chicago Stock Exchange Acquisition

Chicago Stock Exchange revealed that it accepted acquisition offer from Chinese firms to propel the number of Chinese companies' listing.(Photo : Getty Images)

Chicago Stock Exchange (CHX) on Monday revealed information's about Chinese investors in its latest filing with Securities and Exchange Commission (SEC). The Monday's filing was apparently meant to assuage the concern among American leaders over a possible takeover by the Chinese government.

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The filing disclosed that Chongqing Casin Enterprise Group would own 20 percent in CHX's parent company.

The filing further disclosed that the remaining 50 percent stake in the parent company would be owned by Chinese investors including Chongqing Jintian Industrial Co. Ltd., Chongqing Longshang Decoration Co. Ltd., and Raptor Group.       

However, in its 280-page regulatory filing with SEC, CHX emphasized that the Chinese investors' stake will not exceed more than 49.5 percent and none of the investing companies are directly or indirectly controlled by the Chinese government.

 American Leaders Wary About Chinese Ownership

Chicago Stock Exchange's announcement in February about receiving a proposal from a Chinese investment company to own substantial stake triggered extreme reactions from American leaders and analysts.

The reaction was a bit more than the 'customary negative reaction' about Chinese acquisition, since this is the first time for a Chinese firm to own considerable stake in an American stock exchange.

Even US President-elect Donald Trump took a dig at the possibility of CHX being owned by a Chinese company, claiming that the takeover clearly indicated that US competitiveness was being eroded by Chinese firms.

 CHX is Oldest but not the most Profitable Exchange

Meanwhile, the 134-year-old CHX is the oldest stock exchange in the US, but it hardly boosted its presence in the country's equity market. The stock exchange accounts for merely 0.5 percent share in the US equity market, which is mostly dominated by NASDAQ and New York Stock Exchange.

According to CHX, it accepted the acquisition offer from Chinese investors as such move will help propel the number of listing from Chinese companies. Based on rough estimate, there is a massive backlog of Chinese companies wanting to go public.   

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