U.S. Banks Subpoenaed Over Chinese IPO Ties

The U.S. House Select Committee on China has issued subpoenas to the CEOs of JPMorgan Chase and Bank of America due to their involvement in underwriting the IPO of Chinese battery manufacturer CATL. The government accuses CATL of collaborating with China's military, a claim the company denies, stating no involvement in military activities.

The committee's request for information was initially made in April. Bank of America submitted ten documents, including nine that are public, while JPMorgan provided one public document. However, the panel has yet to receive complete data. A Bank of America spokesperson noted ongoing dialogue with the committee, though JPMorgan remained silent on the matter.

Amidst longstanding U.S.-China tensions over trade, technology, and geopolitics, Republican Rep. John Moolenaar, leading the committee, previously urged U.S. banks to withdraw from CATL's Hong Kong IPO. Washington's watchful eye on Beijing adds pressure on financial institutions involved in Chinese market offerings.

(With inputs from agencies.)