US Congress passes bill to delist con Chinese cos
Washington: The US Congress has passed a bill that prohibits companies from being listed on American stock markets if they fail to provide the regulators access to their audit information for three years in a row, paving the way to delist deceitful Chinese companies from the US securities exchanges.
The bipartisan Holding Foreign Companies Accountable Act will help protect American investors and their retirement savings from foreign companies that have been operating on US stock exchanges while flouting oversight. The bill was passed by the House of Representatives on Wednesday.
It was passed by the Senate on May 20. The bill now heads to the White House for President Donald Trump to sign it into law. The bill prohibits securities of a company from being listed on any of the US securities exchanges if the company has failed to comply with Public Company Accounting Oversight Board (PCAOB) audits for three years in a row.
It requires public companies to disclose whether they are owned or controlled by a foreign government, including China's communist government; and ensures foreign companies traded in America are subject to the same independent audit requirements that apply to American companies.
The Trump administration has passed a series of measures aimed at severing the economic ties between the US and China. US-China ties have deteriorated sharply over issues ranging from trade, the coronavirus pandemic and telecoms-gear maker Huawei to China's territorial claims in the South China Sea and its clampdown on Hong Kong. "There is no reason to let Communist China game the system and put American investments in jeopardy. Our bill protects our constituents' hard-earned money and shines a light on China's nefarious actions. I am glad the House supported it and look forward to President (Donald) Trump signing it," Senator Kevin Cramer said.