JPMorgan, Bank Of America Subpoenaed Over IPO Of China’s CATL

Authored by Aldgra Fredly via The Epoch Times,

The House Select Committee on the Chinese Communist Party has issued subpoenas to JPMorgan Chase and Bank of America, requiring the banks to provide documents related to their roles in the initial public offering (IPO) of Chinese battery maker Contemporary Amperex Technology Co. (CATL).

In a July 24 statement, Rep. John Moolenaar (R-Mich.), chair of the committee, said CATL is “a key player in China’s military-civil fusion strategy,” which poses risks to U.S. investors and the national security of the United States.

Moolenaar said the committee had requested the banks to provide all documents related to their roles in underwriting CATL’s IPO in April but has yet to receive all the required information.

Bank of America produced 10 documents, nine of which are publicly available, and JPMorgan provided only one public document in response to that request, according to his statement.

“We asked for answers months ago. They stonewalled. Wall Street shouldn’t be underwriting Chinese military companies—and the American people deserve transparency,” Moolenaar stated.

He urged JPMorgan CEO Jamie Dimon and Bank of America CEO Brian Moynihan to comply with the subpoenas and provide the congressional panel with all required documents by Aug. 8.

JPMorgan has declined to comment. The Bank of America stated that it would engage with the House select committee on the matter.

“We’ve had constructive engagement with the committee and will continue to engage,” a Bank of America representative said in an emailed statement to The Epoch Times.

CATL was designated by the Department of Defense as a Chinese military company in January.

The company has rejected the designation and said it is “not engaged in any military-related activities.”

“It does not restrict CATL from conducting business with entities other than DoD and is expected to have no substantially adverse impact on our business,” CATL said in a Jan. 7 statement.

The Chinese battery manufacturer said it would engage with the Department of Defense (DOD) and may pursue legal action to challenge the designation if necessary.

In April, the committee urged JPMorgan and the Bank of America to withdraw from their roles in CATL’s IPO, warning that their involvement in the company’s listing on the Hong Kong stock exchange could directly support the Chinese Communist Party’s military buildup and human rights abuses against the Uyghur minority in China’s Xinjiang region.

CATL went public on the Hong Kong stock exchange on May 20, and serving as joint sponsors were Chinese companies China International Capital Corporation and China Securities International, and American companies Bank of America Securities and JPMorgan.

This marked CATL’s second listing on the Hong Kong Stock Exchange. CATL said the IPO was of 135 million shares, which saw a 12.55 percent price increase upon opening.

The House select committee criticized the banks in an X post for backing CATL’s IPO and called on Congress to “strengthen outbound investment rules to stop U.S. capital from aiding our adversaries.”