U.S. President Donald Trump has signed a bill calling for the delisting of foreign companies that don t adhere to the same accounting transparency standards that securities regulators impose on public U.S. firms.
Why It Matters: The Holding Foreign Companies Accountable Act takes aim at Chinese. Read More. Don t Miss Any Updates! News Directly in Your Inbox Subscribe to:
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U.S. President Donald Trump has signed a bill calling for the delisting of foreign companies that don t adhere to the same accounting transparency standards that securities regulators impose on public U.S. firms.
Why It Matters: The Holding Foreign Companies Accountable Act takes aim at Chinese companies and drew rare strong bipartisan support in the U.S. Congress before arriving on Trump s desk.
The act says delisting could happen if a given company doesn t comply with audit inspections three years in a row.
China s government does not allow the board to perform audit inspections of Chinese companies listed in the US. Audit inspections are performed on other U.S.-listed companies by the Public Company Accounting Oversight Board, set up after accounting scandals such as the one that blew up Enron in the early 2000s.
Donald Trump signs bill that could knock Chinese firms off US bourses
While it applies to companies from any country, the legislation s sponsors intended it to target Chinese companies listed in the United States, such as Alibaba, tech firm Pinduoduo Inc and oil giant PetroChina Co Ltd
Reuters | December 19, 2020 | Updated 14:37 IST
US President Donald Trump
President Donald Trump on Friday signed legislation that would kick Chinese companies off US stock exchanges unless they adhere to American auditing standards, the White House said, giving the Republican one more tool to threaten Beijing with before leaving office next month. The Holding Foreign Companies Accountable Act bars securities of foreign companies from being listed on any US exchange if they have failed to comply with the US Public Accounting Oversight Board s audits for three years in a row.
While not new, many carriers may have been surprised this year when the Federal Motor Carrier Safety Administration (FMCSA) knocked on their digital doors to conduct off-site audits.
The off-site audit has been growing in use by FMCSA, which conducted nearly 1,000 off-site audits through. Read More. Don t Miss Any Updates! News Directly in Your Inbox Subscribe to:
Brendan Smialowski/AFP via Getty Images
Trump on Friday signed a bill that would ban Chinese companies from being listed on US stock exchanges unless they adhere to American accounting standards.
Under the Holding Foreign Companies Accountable Act, foreign firms aren t allowed to trade shares on any US exchange if they fail audits from US regulators and must disclose ownership by foreign governments.
The legislation gives Trump another tool to wield against China before he leaves office in January.
President Donald Trump on Friday signed legislation that would kick Chinese companies off US stock exchanges unless they adhere to American auditing standards, the White House said, giving the Republican one more tool to threaten Beijing with before leaving office next month.