Benzinga - by Chris Katje, Benzinga Staff Writer.
U.S. Rep. Laurel Lee (R-Fla.) is being called out on social media for a recent stock position she disclosed in the Chinese company Alibaba Group Holding (NYSE:BABA).
Trading activity by members of Congress continues to be a hot button topic thanks to potential conflicts of interest for elected officials.
What Happened: Many members of Congress sit on Congressional committees that could provide information on contract awards won by companies, new policy changes and more, and this information is sometimes the root of calls for red flags on trading activity by Congress members.
A disclosure on Quiver Quant‘s Congress trading dashboard shows Lee and her husband, former Florida state Sen. Tom Lee, selling $100,000 to $250,000 in Alibaba shares Dec. 29. The trade was disclosed on Jan. 4.
The trade could have been made for a number of reasons, including year-end tax selling, but has drawn attention due to Lee's public comments on China and her position on the Committee on Homeland Security’s subcommittee on Cybersecurity and Infrastructure Protection.
"Representative Laurel Lee just disclosed a sale of up to $250K of stock in the Chinese company Alibaba. Lee sits on the House Subcommittee on Cybersecurity," Quiver Quant tweeted.
The tweet from Quiver Quant drew the attention of former Congressman and now social media influencer/content creator George Santos.
"Lee had those stocks before going to Congress," Santos said. "And I applaud her for dumping it … maybe she's distancing herself from anything with ties to the CCP?"
UnusualWhales also highlighted the trade in a tweet.
"Here's a funny Congressional trade. New Republican Rep Laurel Lee has been openly critical of China. Interestingly though, her spouse sold $250k in $BABA, a Chinese tech company," UnusualWhales tweeted.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: In a tweet last month, Lee singled out threats to the U.S. that could include China.
"As threats from foreign adversaries grow stronger, we must bolster our cybersecurity infrastructure. Homeland Security and I are working to counter threats to our national security, protect our nation's critical infrastructure, and secure America's cyber border," Lee tweeted.
Lee shared a tweet from NewsNation at the time that said Chinese cyber hackers are targeting U.S. infrastructure in a potential move to "infect U.S. infrastructure if conflict arises in Taiwan."
During her campaign for the Florida Congressional seat, Lee's positions in Chinese companies were brought up by her opponent Alan Cohn, as shared by Florida Politics.
"She and her husband are major investors in a Chinese company that is owned by a member of the Chinese Communist Party," Cohn said.
Lee brushed off the allegations during a televised debate.
"What Mr. Cohn just had to say about my family and the Chinese Communist Party is wholesale made up," Lee said.
Lee denied the claim and said that Cohn had brought "nonsense and false allegations against me."
A financial disclosure at the time showed that Lee and her husband owned between $100,000 and $250,000 in Alibaba stock.
Lee's campaign would later backtrack and say the position was owned by her husband.
"Laurel Lee doesn't personally own any Alibaba stock. Her husband owns and manages a large portfolio of stocks that is not a marital asset and which she has no control over, but under House rules, all her husband's holdings are required to be reported in the filing, which they were," Lee's spokesperson Sarah Bascom previously said.
The Last Word: As tensions between the United States and China rise, Congress members holding shares of Chinese stocks in their portfolios or in their spouse's portfolios could become a major talking point in the continued scrutiny of Congressional trading activity.
Read Next: Top Stocks, Sectors Loved By Congress Members Who Traded In 2023: Apple, NVIDIA, Microsoft, Ford And More Stocks To Watch In 2024
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.