Trump announces plan to delist Chinese companies that won't comply with U.S. stock exchange rules
The proposal addresses U.S. regulators’ inability to inspect the auditing standards of Chinese companies
The Trump administration announced a plan Thursday that will force Chinese companies with shares traded on U.S. stock exchanges to forfeit their listings if they fail to comply with U.S. accounting requirements.
The proposal addresses a long-standing dispute over U.S. regulators’ inability to inspect the auditing standards of Chinese companies that sell shares on the exchanges, according to The Wall Street Journal.
The plan would require Chinese firms listed on either the New York Stock Exchange or Nasdaq Stock Market to comply by 2022 or give up their listings on those exchanges.
Just the News reported in May that the president was preparing such a plan.
Chinese companies have since 2013, as part of an Obama administration deal, been allowed to participate in U.S. stock and bond exchanges without having to fully comply with the same Sarbanes-Oxley Act accounting practices and risk disclosure required of American companies.