Saturday, 30 May, 2020

Senate Passes Bill to Increase Oversight of Chinese Firms on US Exchanges

An investor checks stock prices at a brokerage in Shenyang capital of Liaoning province An investor checks stock prices at a brokerage in Shenyang capital of Liaoning province
Ginger Lawrence | 23 May, 2020, 08:02

The shares of e-commerce major Alibaba fell over 2 per cent. As per a report in Bloomberg, in case of higher scrutiny many Chinese companies would list in Hong Kong.

For Chinese ADR firms with small market caps, Pang added, the best idea would be a voluntary delisting from the US exchange before a primary listing in Hong Kong.

The measure now has to be passed by the House of Representatives before being signed into law by President Trump.

"The list of anti-China actions is quickly growing in [Washington] D.C.", wrote Ed Mills, Washington policy analyst at Raymond James.

According to Reuters, Nasdaq is set to unveil new restrictions on initial public offerings to make it harder for some Chinese companies to debut on its stock exchange.

"We have to for investor protection, and we have to for national security", Kudlow told Fox Business on May 19.

"The Holding Foreign Companies Accountable Act" will prohibit any firm's securities to be listed on any exchange in the nation should it fail to comply with USA accounting standards three years in a row. LK, -27.30%, which revealed in April that it had fabricated 2019 sales figures and was being investigated by Chinese securities regulators.

Megan Fox appears in Machine Gun Kelly's latest music video
The two Wednesday in 2010 but before that, the Hollywood pair broke off their engagement in 2009-three years after Green popped the question.

"We can't let foreign threats to Americans" retirement funds take root in our exchanges".

It also requires public companies to disclose whether they are owned or controlled by a foreign government, including China's Communist government. Most recently, the shares of the Chinese company Luckin Coffee plummeted after an accounting fraud came to light.

He said that a China spokesman - without specifying who - spoke "stupidly on behalf of China, trying desperately to deflect the pain and carnage that their country spread throughout the world". This is an important step forward for transparency... For the moment Beijing is not reacting, holding back until the presidential election in November.

China needs "to play by the rules", Kennedy added on the Senate floor Wednesday.

Nasdaq on Tuesday informed Luckin Coffee it plans to delist the company, a month after the Chinese beverage brand said an internal investigation found that its chief operating officer had falsified 2019 sales by about $310 million. "We expect the debate to remain among the top topics of the 2020 USA presidential election".

Senators behind the Bill say it is an effort to subject Chinese companies to the same oversight as United States companies to protect American shareholders from fraud that could wipe out their investments. The subjects of these legislation include the mass internment of Uygurs, cyber-security and Taiwan and the South China sea among others.