Chinese firms with shares traded on US stock exchanges could lose their listings if they won’t comply with US audit requirements, Treasury Secretary Steven Mnuchin has warned.
“As of the end of next year, if they do not fully comply, and that’s Chinese companies [and] any other companies, because they all have to comply with the same exact accounting ... they will be delisted on the exchanges,” he said.
The warning comes amid a long-lasting dispute over US regulators’ inability to inspect the financial audits of Chinese corporations, such as e-commerce giant Alibaba, that are listed in New York. It also follows a recommendation by the US President’s Working Group on Financial Markets that had asked for measures that would enhance the listing standards on US exchanges in order to “protect investors against risks” from Chinese companies.
Last week, President Trump gave warning to US firms that they would be banned from doing business with the Chinese-owned social media platforms TikTok and WeChat within 45 days. He says the apps are used to spy on US citizens – a claim China stringently denies.
Source: RT