On Monday, in a statement China said it firmly opposes U.S. President Donald Trump’s bill that would remove any Chinese companies from U.S. stock exchanges unless they adhere to U.S. auditing standards.
Chinese companies have tapped the lucrative U.S. stock market hoping to gain higher valuations but do not disclose basic investor information adding to heightened opaqueness in their book keeping. For year, the U.S. Administration has tried to persuade Chinese companies to commit to U.S. auditing standards.
Taking a political hardline, China’s foreign ministry spokesman Wang Wenbin said, “This is nothing but an unjustified political crackdown on Chinese enterprises listed in the United States. It will seriously hinder the normal listing of Chinese companies and distort the basic market economy rules that the U.S. has always touted”. Earlier last week on Friday, Trump signed legislation that would kick out non-compliance companies from U.S. stock exchanges unless they adhere to American auditing standards, said the White House.