China clears key hurdle to buy Chicago Stock Exchange
China just moved a step closer to acquiring one of America’s oldest stock exchanges, despite security concerns raised by some in Congress.
This week a U.S. panel that examines foreign deals for potential national security concerns cleared the purchase of the 134-year-old Chicago Stock Exchange by a China-led group of investors.
The Chicago Stock Exchange said the Committee on Foreign Investment in the United States (CFIUS) decided there are “no unresolved national security concerns” over the deal, which was first announced in February.
A U.S. Treasury spokesperson declined to comment, citing policy not to disclose information about specific CFIUS cases.
Representatives for CFIUS did not respond to a request for comment on the news, which was first reported by Reuters.
The acquisition by China’s Chongqing Casin Enterprise Group still faces SEC approval. If cleared, the deal would give China a foothold in the vast American stock market, the largest in the world.
The struggling Chicago Stock Exchange is far smaller than the Nasdaq (NDAQ) and the iconic New York Stock Exchange. Earlier this year it accounted for just 0.5% of U.S. trading.