Regulators to End Preferential Treatment Given to US-Listed Chinese Companies

U.S. regulators are moving forward with a plan to crack down on Chinese companies traded in U.S. exchanges, overturning an agreement signed with Beijing in 2013 under the Obama administration.

The plan will require Chinese companies listed in U.S. exchanges to use auditors overseen by U.S. regulators.

To reduce market disruption, U.S. regulators would provide a transition period until Jan. 1, 2022, for currently listed companies to come into compliance with the new standards.

There were 217 Chinese companies listed on U.S. exchanges, with a total market valuation of $2.2 trillion, as of Oct. 2.

Regulators in Beijing have refused to allow audit inspections of U.S.-listed Chinese companies on the grounds of national security and state secrecy.

In 2013, under the Obama-Biden administration, the PCAOB signed a memorandum of understanding with regulators in Beijing, giving Chinese companies preferential treatment.

The action will represent the latest challenge for Chinese companies listed on U.S. exchanges.
 

https://www.theepochtimes.com/regulators-to-end-preferential-treatment-given-to-us-listed-chinese-companies_3594981.html