WASHINGTON – Chinese companies of companies trading on the US stock exchanges will be forced to relinquish their listings unless they comply with US accounting requirements under the plan recommended by the Trump administration on Thursday.
The proposal addresses the long-running dispute over the inability of US regulators to inspect the accounting quality of Chinese companies selling shares here.
To comply, Chinese auditors would have to share their work papers with US audit regulators. Chinese companies that have not yet gone public – but are planning an initial public offering – before they can make public compliance on the NYSE or Nasdaq, according to officials at the Department of Public Treasury and Securities and Exchange Commission.
The plan is similar to the bipartisan legislation that was passed by the Senate in May and was sponsored by the censor. John Kennedy, R-La, and Chris Van Hollen, D-MD. This would require rulemaking by the SEC, which would eventually complete accounting. The quality of companies whose shares are traded in the United States
An expanded version of this report appears on WSJ.com.
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