SEC Issues Ultimatum to China: Delist or Audit as per Holding Foreign Companies Accountable Act

The SEC has moved to hold U.S. listed Chinese companies accountable as stated in the Holding Foreign Companies Accountable Act. Under this act filed in 2020, Chinese companies will need to adhere to standard auditing or be delisted from U.S. exchanges. The U.S.-China Economic and Security Review Commission has compiled a list of 248 Chinese companies that the SEC will initially pursue.

I love this move by the SEC and think this is long overdue. There’s no reason that Chinese companies listed in the U.S. shouldn’t be held to the same standards as every other publicly listed company, foreign and domestic.

00:00 – Holding Foreign Companies Accountable
00:17 – Chinese stocks are down
01:42 – SEC announces audit requirement for ADRs
02:52 – Chinese companies have not been held to standard
04:19 – Catch 22 between U.S. and Chinese law
05:27 – China needs to play by our rules
06:26 – Beijing Responds

#SEC #China #StockMarket
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