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"California has a shortage of 3.5 million homes, and that is the root cause for homelessness for most people," said Wiener, who introduced a bill－SB 50－last year to legalize affordable housing near transit and job centers.

"But public reaction on such misconduct has proved to be a more serious deterrent, though there is no regulatory punishment," she said.

"Capital market functions will be impaired without the registration-based IPO mechanism and hence would not be able to serve technology startups with high efficiency. Therefore, efforts should be made to push forward this very basic mechanism of the capital market. But at the same time, progress should be made with no haste, allowing the capital market to mature and accept the wider adoption of the mechanism as well as the completion of related policies," he said.

"Capital is to a company what blood is to a man. Private enterprises, especially those in the growth period, cannot function well without enough financial support," Yu added.

"But taking the long view, fintech companies in general have great potential for development, as they represent new technologies and new business models," he added.