Fidelity's Anthony Bolton has said he expects changes to US listings regulations following concerns over reverse takeovers and admitted market conditions in China have surprised him.
Speaking at the first Annual General Meeting of his £635m Fidelity China Special Situations trust today, Bolton said he believes the US will eventually remove the 'reverse-takeover' loophole which allows Chinese businesses to buy shell companies in the US in order to list on major stock exchanges. “I think they should close that loophole, and I think the US will do that over time, because it is bringing US markets into poor repute,” he said. Bolton’s investment in two such companies, which subsequently produced losses for the fund, were particularly surprising to him because they were...
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