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U.S. lawmakers will question China’s role in the GameStop pump – Kindesk

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U.S. lawmakers are ready to ask Keith Gill, a businessman, about their role among Reddit and Robinhood chief executives. Gamestop insanity At a congressional hearing this weekend, however, some are again concerned: whether China is involved.

Several Republican lawmakers from the House Financial Services Committee have said they plan to investigate Reddit’s relationship with Chinese tech giant Tencent and Robinhood rival Momo. Politico Report. Momu a Fully owned Futu Holdings’ subsidiary, which also supports Tencent.

These Republicans are reportedly concerned about possible manipulation by Chinese companies to increase Gamestop’s stock through trading app Robinhood and some Reddit Day traders.

It is not clear from the report why these lawyers want to investigate these Chinese firms and what specific questions they want to ask during the hearing on Thursday. Announcement Rep. Presiding over the committee. Maxine Waters, (D-California).

However, the gamestop hearing comes at a time like this Technology nationalism The United States and China are running high. Policymakers have imposed – or tried to impose – Limitations Which accelerates the decoupling of digital platforms, supply chains and knowledge networks.

“We are living in a time of increasing competition between Chinese tech and so-called Western tech,” said James Cooper, a State Department consultant and adviser to the U.S. State Department.

He said he was investigating whether corrupt Chinese actors had manipulated the price of gamestops as a “political theater”. Tencent and Momu did not respond to requests for comment as of press time.

China focus

Excluding the political theater, there could be several reasons why these lawyers are looking at China. One is the potential for Chinese retail investors to jump into the gamestop stock frenzy. The other is the continued influence of Chinese-owned trading apps in the United States

China has something 167 million Retail investors under the total market value of the Chinese stock market (about 200 200 billion). Chinese retail investors are able to trade gamestop stocks through Chinese online brokerage platforms with US broker licenses such as Momo and Webul. Both Momu and Weble are founded by Robinhood’s main rivals in the United States, former employees of Tencent and Alibaba, respectively.

Became webull The second most popular Applications in the United States came at a time when online brokerages were barred from buying GameStop and AMC Entertainment stocks. The failed response due to the limitations of Robinhood’s business is that both Web and Momu have become alternative platforms for Robinhood investors.

Webbl began offering business services for cryptocurrencies in 2020. Compared to last year, it has increased the broker’s clients to more than ten million users. Although its current user base is shaken by Robinhood’s 13 million, Webb says it is cutting users off from its competitors, according to A report Bloomberg Businessweek.

Read more: Tiktok and the Great Firewall of America

Retail investors were present Turned Web after shutting down certain stock businesses pumped by Reddit Group, including Robinhood GameStop. However, the web later shut down the transaction, claiming that its clearing firm had asked it to close new positions in certain stocks.

Lawmakers’ concerns about Reddit’s relationship with Tencent could begin with this $ 300 million During the series de-funding in February 2012, when the Chinese company invested $ 150 million as the main investor.

Tencent’s funding soon drew criticism from Reddit users who favored privacy and decreed censorship. However, some Analysts Believe that Tencent will be able to control the content on the platform.

Robinhood’s rival

Futu Inc. to expand its business in the United States at the top of Futu’s success in mainland China, the San Francisco-based Momu. Part of its effort. Founded by Hua Li, who was one of Tencent’s early employees in 2012, Futu is one of China’s largest online brokerage platforms and allows mainland Chinese retail users to trade in Hong Kong- and US-listed stocks.

Futu Inc. A broker-dealer registered with the U.S. Securities and Exchange Commission and a member of both the Financial Industry Regulatory Association and the Securities Insurance Protection Corporation (SIPC), said in a statement on its website.

Futu Score Nasdaq aims to be one of the largest Asian primary public offers of 2019 and one of the leading players in online brokerage services for retail investors worldwide.

According to the Securities and Exchange Commission, Lee Furti has 40.2% equity with Futur’s ut1.2% voting power, while Tencent has 30.3% stake in the firm with 22.2.2% voting power. Filing Dated April 27, 2020.

Webbel Fumi Technology is a subsidiary of Alibaba’s former Ankan Wang founded in 2016 in Hunan, China.

While Weble complies with the same regulations as other U.S. brokerages and stores user data locally, Bloomberg reports that it has an office in Lower Manhattan, Bloomberg reports.

Webb has voluntarily sought a review of the ownership of the U.S. Foreign Investment Committee (CEFIAS), a panel that barred several Chinese-owned companies from expanding into the U.S. due to national security, the organization’s chief executive, Anthony Denier, said in the report.

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