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Factbox-What the U S securities regulator wants Chinese issuers to disclose
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In prepared remarks on June 23, 2021, Chair Gary Gensler of the Securities and Exchange Commission (SEC) provided additional insight into the commission’s recently announced regulatory agenda and its shift in priorities. His statement and the agenda show that new public company disclosures will be at the forefront of upcoming and pending rulemakings. In response to the regulatory agenda, the two Republican commissioners, Hester Peirce and Elad Roisman, issued a joint statement voicing concerns about efforts to undo certain recently adopted rules.
Although the timing and ultimate outcome of the new rulemakings remain to be seen, public companies should expect to see a number of proposals in the coming months, which will be subject to public comments before final adoption by the SEC. Significant proposed and final SEC rulemaking items from both the short-term agenda and long-term agenda are summarized below.
By Aaron Nicodemus2020-12-21T17:29:00+00:00
President Donald Trump signed into law a measure that will kick publicly traded Chinese companies off U.S.-based exchanges if they refuse to allow U.S. regulators to examine their finances.
Called the “Holding Foreign Companies Accountable Act,” the new law (S.945) will delist a foreign-owned company that refuses to comply with the U.S. Public Company Accounting Oversight Board’s (PCAOB) audit requirements for three consecutive years.
Congress passed the bill with strong bipartisan support earlier this month. Trump signed the bill into law Friday.
“Taking this action is crucial to hold Chinese companies accountable and to safeguard the millions of American families who rely on modest investments to retire, send their kids to college, and weather financial emergencies,” Sen. Chris Van Hollen (D-Md.), who co-authored the legislation in the Senate, said in a statement.