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Doris Yu · · 1 min readUS Congress passes bill that could lead to Chinese firms being delisted
Having got the support from the House, the bill has been sent to President Donald Trump, who is expected to approve it.
According to the legislation, Chinese firms will be delisted from the US stock market if they don’t allow US inspectors to review their auditors’ work for three consecutive years.
Responding to the legislation, Chinese Foreign Ministry spokeswoman Hua Chunying said Beijing “firmly opposes politicizing securities regulation.”
As of 2019, more than 150 Chinese firms are traded on the US exchange, with a total value of US$1.2 trillion, said the report, citing the US Securities and Exchange Commission.
Some Chinese companies that went public in the US this year include Perfect Diary-owner Yatsen Holding Limited, which raised US$617 million in a US IPO, and delivery platform Dada Nexus, among others.
However, there’re also concerns that the move may lead Chinese firms to go public in Hong Kong or other countries, and US investors could still purchase the stock.
Edited by Collin Furtado and Jaclyn Teng
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