shine trader reports:
The unreasonable political pressure of the United States on Chinese Listed Companies in the United States has gone further. Hong Kong’s South China Morning Post reported on the 23rd that the US Securities and Exchange Commission (SEC) passed a new regulation on the 22nd local time, which will help the agency force companies that do not comply with us audit regulations to delist from us exchanges. It is reported that this threatens hundreds of Chinese enterprises listed in the United States.
According to the report, according to the new regulation, all companies headquartered in jurisdictions where the local government refuses to let enterprises comply with the provisions of U.S. regulators will be regarded as “non-compliance”, with only a few exceptions.
It is reported that the audit regulations of the United States were formulated in 2002 and apply to all foreign companies seeking to publicly issue shares in the United States. According to the SEC, none of the about 270 Chinese companies listed on the American Stock Exchange comply with this rule.
Unreasonable pressure further! Hong Kong media: the securities and Exchange Commission of the United States has passed new regulations, which will threaten hundreds of Chinese enterprises listed in the United States
The report also said that the new regulation means that basically all US listed companies headquartered in China will be delisted.
The report commented that the adoption of this new regulation is the “biggest step” taken by the United States in implementing the so-called “foreign company Accountability Act” (hfcaa). According to the accountability law promulgated at the end of 2020, foreign companies listed on American exchanges will face delisting if they fail to submit audit results for three consecutive years.
“To some extent, the issue of disclosure (audit results) has become a secondary issue,” said Gabriel verdau, senior vice president of global business information company Teneo. “Many American politicians believe that American investors should not provide funds for Chinese enterprises anyway.”
The report said that this move is also part of a broader plan that Washington has been pursuing this year to decouple from Beijing in the financial field.
The report mentioned that at the Senate hearing of the U.S. Congress last week, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, also said that he expected to publish a list of companies whose audited institutions refused to disclose their accounts to U.S. regulators early next year. The South China Morning Post believes that this is to put pressure on these audited institutions to comply with the US Listing Rules for foreign companies.
The report also mentioned that in July this year, the SEC stopped processing the registration of initial public offerings (IPOs) and other securities offerings of Chinese enterprises in the United States. In March this year, the U.S. securities regulator adopted new regulations requiring foreign companies to comply with U.S. audit standards, or they will be delisted by the U.S. stock exchange. In addition, the United States also requires foreign companies to disclose their relationship with the government.
China’s Foreign Ministry spokesman Hua Chunying said earlier that the promulgation of the so-called “foreign company accountability law” containing provisions that clearly discriminate against Chinese enterprises is completely an unreasonable political crackdown on Chinese listed enterprises in the United States, seriously distorts the basic norms of the market economy that the United States has always advertised, and also deprives American investors and the public of the opportunity to share the development dividends of Chinese enterprises, In the end, it will only damage the international status of the US capital market and its own interests. We urge the United States to stop politicizing securities management, stop discriminatory practices against Chinese enterprises, and provide a fair, fair and non discriminatory business environment for enterprises of various countries, including Chinese enterprises, to list in the United States.
Reprint indicated source：Shine Trader Limited Live information