US Senate passes bill that could delist some Chinese firms

US Senate passes bill that could delist some Chinese firms

US Senate passes bill that could delist some Chinese firms

Chinese companies can still circumvent the problem by turning to global accounting firms for auditing and inspections so that they conform with USA government regulations, said Dong. It would also require companies to certify that they're not under the control of a foreign government.

The measure must still pass the House of Representatives and be signed by President Trump to become law.

U.S. lawmakers have raised red flags over the billions of USA dollars flowing into some of China's largest corporations, much of it from pension funds and college endowments in search of fat investment returns. Under the bill, public companies that are based in or have affiliates in China, France or Belgium could be banned from having their stock and bonds traded within the U.S. Trump recently told Fox Business that he's "looking at" Chinese companies that trade on the NYSE and NASDAQ but don't follow U.S. accounting rules.

On May 20, 2020, the U.S. Senate unanimously approved bipartisan legislation (the "bill") that would amend Section 104 of the Sarbanes-Oxley Act of 2002.

Though the law could be applied to any foreign company, lawmakers say it is aimed at strengthening disclosure requirements on Chinese firms.

It has been amplified especially by Republicans, as US President Donald Trump has sought to blame China as the main culprit in the COVID-19 pandemic. E-commerce juggernaut Alibaba fell by 0.17 percent, new energy vehicle maker Nio by 5.69 percent and emerging video-sharing platform Bilibili by 7.16 percent.

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.

Coronavirus pandemic halts vaccination for nearly 80 million children
"South America has become a new epicenter of the disease", said Mike Ryan, the WHO's top emergencies expert. They said 80 million children under the age of 1 were living in those countries.

"In the past several months, US politicians proposed to delist Chinese companies from USA stock exchanges with different criteria, and cap Americans' exposure to the Chinese market", wrote analysts from China Renaissance. The Chinese coffee chain recently revealed that an internal probe found hundreds of millions of dollars of its sales in 2019 were fabricated.

Van Hollen said: "We just want Chinese companies to play by the same rules as everybody else".

The legislation comes at a time when economic relations between the U.S. and China are being pushed to the brink of animosity.

The shares of Chinese companies plunged on the U.S. stock exchanges after the development.

While not technically part of the government, the PCAOB is overseen by the Securities and Exchange Commission. That bill, which was introduced by Sens.

The report by Bloomberg came ahead of another round of US-China trade talks in October, as the two countries have been engaged in a trade dispute since June 2018, when the United States imposed the first round of tariffs on Chinese imports, prompting Beijing to respond in kind.

The bill was sponsored by senators Chris Von Hallen and John Kennedy, according to Reuters.

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