New language which welcomes foreign countries to invest in US land will be added to the New York Stock Exchange (NYSE) manual. According to the manual draft, the NYSE will allow foreign countries to establish a National Asset Company (NAC) in the US.
The NYSE announced the new language that will be added to the NYSE manual, stating, "103.00 Foreign Private Issuers. The Exchange welcomes listing inquiries from foreign private issuers." The announcement was made by Lynn Martin, the President of NYSE.
According to the NYSE website, Natural Asset Companies (NACs) are a new class of listed companies that are being pioneered by NYSE and Intrinsic Exchange Group (IEG). These companies are based on nature's intrinsic and productive value, such as forests, wetlands, coral reefs, and farms, which serve as a store of value crucial to our economy and life on Earth.
The draft of the NYSE manual reveals that the new language will allow foreign entities to create their own Natural Asset Company (NAC) in the US without any review by the Committee on Foreign Investment in the United States (CFIUS). The CFIUS is responsible for reviewing foreign investments in the US to determine their effect on national security.
Foreign investment in the US, particularly in real estate such as farmland, has been a contentious issue. The Federal Newswire reported that the Chinese Communist Party (CCP) aims to rival the United States and has been strategically increasing control over global food supply chains while also acquiring American land. Chinese investors' ownership of US agricultural land has significantly increased from 13,720 acres in 2010 to 352,140 acres in 2020, totaling $1.9 billion. These issues have been addressed by the House Committee on the CCP.
The addition of this new language to the NYSE manual may have implications for foreign investment in US land and will likely be closely monitored by lawmakers and policy experts.