China Plans to Ban U.S. IPOs for Data-Heavy Tech Firms [WSJ]
China Securities Regulatory Commission officials said that companies with less sensitive data, such as those in the pharmaceutical industry, are still likely to receive Chinese regulatory approval for foreign listings, according to the people…. Under the new rules, China would also establish a mechanism that requires companies to obtain formal approval for overseas IPOs from a cross-ministry committee that would be set up in the coming months, they said….
It isn’t clear whether the new rules would affect companies that are already listed on a foreign market under the VIE structure. In recent years, some New York-listed Chinese companies like search-engine operator Baidu Inc. have done secondary listings in Hong Kong amid rising tensions between Beijing and Washington.
Most Big Hedge Funds Mandate Vaccinations for Return to Offices [Bloomberg]
Many of the firms, which tend to have hundreds of employees in New York or Connecticut, are also delaying return-to-office plans until October or November, people with knowledge of their plans said. At that point, many will implement hybrid schedules allowing remote work a few days a week…. When Bridgewater fully re-opens, it plans to have an “all company” day once a week, when everyone must be in the office, he said.
Two Sigma Investments and Ken Griffin’s Citadel are among the few top hedge-fund firms that aren’t mandating vaccinations. Even though there’s no requirement for them to be in the office, almost all of Citadel’s staff are already vaccinated and back at their desks five days a week, according to a person familiar with the matter.
Two of Bank of America’s Post-Crisis Leaders Will Retire [NYT]
The departures of Anne Finucane, the bank’s vice chair and one of Wall Street’s most powerful women, and Thomas K. Montag, its hard-charging chief operating officer, open the door for new leadership at the nation’s second-biggest bank…. “Let the jockeying begin,” said Mike Mayo, a Wells Fargo analyst who has tracked the bank for decades. The bank should signal by the end of the year who is in the running to eventually take the top job, Mr. Mayo added. “Bank of America needs to more clearly identify the potential successors, because it’s just not obvious,” he said.
The Meme Lords Who Are Taking Over the C-Suite [WSJ]
[Ryan] Cohen, who became GameStop’s chairman in June, is one of several company insiders who now use cryptic tweets or memes that drum up interest in their companies or generate cult-like followings online in forums such as Reddit’s WallStreetBets…. “They don’t want to be interacting with, I think you might say, a dry, boring suit talking corporate speak,” [AMC CEO Adam] Aron said in an interview. Sometimes on Twitter, he said, “I’m explaining real corporate news that’s going on...other times we’re just laughing and smiling and winking a little bit.”
Wall Street Is Looking to Reddit for Investment Advice [WSJ]
Venerable institutions Goldman Sachs Group Inc. and Morgan Stanley are tracking the retail trading frenzy, and hedge funds in New York and London have employees combing through the internet forum of Reddit, Twitter or chat startup Discord in search of trading opportunities…. The activities of these everyday investors is now under close scrutiny at New York-based Cindicator Capital, which has two traders spending the bulk of their days looking for trading opportunities on Reddit and Twitter, according to Nodari Kolmakhidze, the firm’s chief financial officer. In February, Cindicator even posted a job for a sentiment trader that required a refined taste for memes and membership on WallStreetBets that spanned at least a year, before deciding not to fill the post.
Firms Wary as Money-Market Rule Changes Studied After Covid-19 Run [WSJ]
“I don’t think the SEC is in a seat where they want this industry to die a quick death or a slow and painful death,” said Debbie Cunningham, investment chief of global liquidity markets at Federated Hermes Inc., adding that many of the regulators’ ideas would accomplish one or the other. Officials at the SEC “realize that,” she said…. “Regulators are interested in throwing every possible option except the one that would fix the problem: the Fed stepping in to provide liquidity,” said Peter Crane, president of Crane Data.