Connect with us
Financial Press
the-wall-street-journal:-trump-administration-seeks-to-force-chinese-companies-listed-in-us.-to-comply-with-accounting-rules-or-delist
the-wall-street-journal:-trump-administration-seeks-to-force-chinese-companies-listed-in-us.-to-comply-with-accounting-rules-or-delist

Breaking

The Wall Street Journal: Trump administration seeks to force Chinese companies listed in U.S. to comply with accounting rules or delist

The Wall Street Journal

Proposal would require compliance with U.S. accounting regulations by 2022

The proppsal would require rule making by the SEC, which ultimately oversees the accounting quality of companies whose shares are traded in the U.S.


Getty Images

WASHINGTON — Chinese companies with shares traded on U.S. stock exchanges would be forced to give up their listings unless they comply with American accounting requirements under a plan recommended Thursday by the Trump administration.

The proposal addresses a long-simmering dispute over U.S. regulators’ inability to inspect the accounting quality of Chinese companies that sell shares here.

Under the plan, Chinese firms that are already listed on the New York Stock Exchange and Nasdaq Stock Market would have to comply by 2022 — or give up their listings on those exchanges.

To comply, Chinese auditors would have to share their work papers with U.S. audit regulators. Chinese firms that aren’t yet public — but plan an initial public offering here — would have to comply before they can go public on NYSE or Nasdaq, according to senior Treasury Department and Securities and Exchange Commission officials.

The plan is similar to bipartisan legislation that passed the Senate in May and was sponsored by Sens. John Kennedy, R-La., and Chris Van Hollen, D- Md. It would require rule making by the SEC, which ultimately oversees the accounting quality of companies whose shares are traded in the U.S.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Beirut explosion: What happened in Lebanon, and everything else you need to know.

How face masks work and which types offer the best COVID-19 protection.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Breaking

Market Extra Published: Sept. 17, 2020 at 3:41 p.m. ET MarketWatch photo illustration_iStockphoto The spooky-sounding quadruple witching gets a lot of fanfare in the...

Breaking

Ray Dalio certainly is no radical idealist, but in his frequent writings and media appearances the veteran investor consistently calls for Americans to rewrite...

Breaking

Published: Sept. 17, 2020 at 3:32 p.m. ET Pelosi continues to insist keeping the government open and finding a fiscal stimulus deal are on...

Breaking

Futures Movers Published: Sept. 17, 2020 at 3:20 p.m. ET JMMC recommends extension of output-cut compensation mechanism to the end of the year Getty...