Congress Threatens to Delist Chinese Companies Over Audit Disputes

On Wednesday Congress unanimously approved legislation that would threaten a trading ban on shares of major Chinese companies. This would affect the fortunes of companies like Alibaba Group Holdings, Nio Group and a few others. Many listed Chinese companies have refused to share their company audits. This brings about concerns that their audits are not appropriately regulated.

 This bipartisan measure was passed by the Senate in May. It can become a law quickly after it gets President Trump’s signature. From years and years Chinese companies have been resistant to opening their books to public scrutiny. Their refusal to accept overseas inspections of their internal audits reached a feverish pitch during Trump’s administration.

 With the President’s signature, the law will become a reality soon. Chinese companies will get three years to comply before they would be delisted.

 The WSJ said that Chinese companies have been raising capital in America without allowing US regulators to verify audits of their companies.

 “Without this bill the Chinese have been just stonewalling us, and we certainly shouldn’t make it easier for a Chinese company to get American capital than an American company,” said Rep. Brad Sherman (D Calif.), a sponsor of the legislation.

 The Journal reported separately that Chinese officials have voiced concerns and criticized the bill. They say that it would harm capital markets.

 Source WSJ Yahoo! finance

Follow us on Google news for more updates and News


This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.

Full Disclaimer

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.