Home News About 150 Chinese companies may be forced to leave the US exchanges...

About 150 Chinese companies may be forced to leave the US exchanges this year

29
0

According to the Japanese agency Nikkeiabout 150 Chinese companies are at risk of being delisted or voluntarily leaving the US exchanges due to new external audit rules adopted in the US at the end of 2020.

The new law required foreign issuers to provide “comprehensive evidence” that they are not owned or controlled by a foreign government or entities controlled by it. “The issuer is required to provide relevant documents if the U.S. Public Company Accounts Oversight Board (PCAOB.— “b”) cannot audit the reports of an issuer using the services of a foreign audit company whose activities are not subject to the PCAOB audit. If the Committee fails to conduct an appropriate verification of the issuer’s reports for three consecutive years, trading in the shares of this issuer on national exchanges (USA.— “b”) will be prohibited,” the law says.

If earlier the deadline for providing information was set for 2024, now, according to Nikkei, US congressmen want to move the deadline to 2023 – that is, foreign companies will have to report to regulators before the end of this year, or leave that American exchange, on which their securities are traded. Last Monday, shares of the Chinese taxi service Didi already started trade on the OTC market after the company left the New York Stock Exchange. Dozens more Chinese companies could follow Didi’s lead, including big ones like Internet search engine Baidu, according to the Nikkei.


More news in Telegram channel “Kommersant”.

Evgeniy Khvostik

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here