S-4586 : Still Just a Bill

The "Stop Funding the CCP through A-Shares Act" (S.4586) aims to prevent U.S. investment from supporting the Chinese Communist Party (CCP) by:

• Prohibiting U.S. persons from purchasing, selling, or owning securities (A-Shares) listed on certain Chinese stock exchanges controlled by the CCP.
• Requiring U.S. persons to divest of all such covered securities within 180 days of the Act's enactment.
• Establishing penalties for violations, including civil fines and, for willful violations, criminal penalties such as fines and imprisonment.
• Mandating reports to Congress from the Secretary of the Treasury on the mitigation of conditions that adversely affect U.S. interests and investors, and the extent of these conditions concerning securities listed on the Hong Kong Stock Exchange.
• Requiring an annual report on portfolio investments by United States persons in the People's Republic of China

The Act cites concerns about the CCP's ideology, military buildup, human rights abuses, unfair economic practices, and lack of transparency in Chinese financial markets as justification for these measures.