Bipartisan bill introduced to enforce financial compliance on U.S.listed Chinese companies

According to the Accounting Oversight Board, it faced headwinds in inspecting the auditing work of 224 U.S.-listed Chinese companies which have a combined market capitalization of $1.8 trillion.

In a significant development, a bipartisan group of U.S. lawmakers have introduced a bill which when passed into law will require Chinese companies listed on U.S. stock exchanges to submit to regulatory oversight, and provide access to audits and other steps, which are currently restricted by Chinese law.

“Beijing should no longer be allowed to shield U.S.-listed Chinese companies from complying with American laws and regulations for financial transparency and accountability,” said Republican Senator Marco Rubio in a statement.

Democratic Senator Bob Menendez, who co-sponsored the bill, stated “It’s time fo

In a significant development, a bipartisan group of U.S. lawmakers have introduced a bill which when passed into law will require Chinese companies listed on U.S. stock exchanges to submit to regulatory oversight, and provide access to audits and other steps, which are currently restricted by Chinese law.

“Beijing should no longer be allowed to shield U.S.-listed Chinese companies from complying with American laws and regulations for financial transparency and accountability,” said Republican Senator Marco Rubio in a statement.

Democratic Senator Bob Menendez, who co-sponsored the bill, stated “It’s time for China’s government to play by the same rules as American companies in our financial markets.”

In 2018, the U.S. Securities and Exchange Commission (SEC) as well as the Public Company Accounting Oversight Board had issued a warning to investors on the difficulties facing U.S. regulators in inspecting the audit work and practices of auditing firms in China that examine U.S.-listed Chinese companies.

They said the PCAOB has faced obstacles in inspecting auditing work for 224 U.S.-listed companies with a market capitalization of $1.8 trillion.

“Chinese law requires the business books and records to be kept and maintained in China, and it restricts the auditors’ documentation of work performed in China from being transferred outside the country,” said the PCAOB.

r China’s government to play by the same rules as American companies in our financial markets.”

In 2018, the U.S. Securities and Exchange Commission (SEC) as well as the Public Company Accounting Oversight Board had issued a warning to investors on the difficulties facing U.S. regulators in inspecting the audit work and practices of auditing firms in China that examine U.S.-listed Chinese companies.

They said the PCAOB has faced obstacles in inspecting the auditing work for 224 U.S.-listed Chinese companies which have a combined market capitalization of $1.8 trillion.

“Chinese law requires the business books and records to be kept and maintained in China, and it restricts the auditors’ documentation of work performed in China from being transferred outside the country,” said the PCAOB.

 



Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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