You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
China-Japan-Koreas
US one step away from delisting Chinese companies from American stock exchanges
2020-05-25
[American Thinker] Right now, regulations call for companies listed on U.S. stock exchanges to let the Public Company Accounting Oversight Board (PCAOB) oversee the auditing of their financial records if they want to raise money by selling stocks and bonds to the American public. This is a sound regulation rooted in investor-protection. All U.S. companies work with the PCAOB, but the Chinese ones don't.

The PCAOB and Securities and Exchange Commission (SEC) have for years tried to get China to comply with the regulation but with no success. Regulators have the power to kick the Chinese companies off the exchange but have been reluctant to use the "nuclear option" of delisting.

This impasse is about to be broken. This past Wednesday, the U.S. Senate unanimously passed a bill forcing Chinese companies to comply with the auditing regulation or be de-listed. The bill is called the Holding Foreign Companies Accountability Act.

After passage by the Senate, the bill goes to the Democratic-run House. There, Market Watch reports that momentum is building a favorable vote. All that would be left, then, is for President Trump to sign the bill into law.

Chinese companies such as Alibaba Group Holdings and Baidu have raised billions of dollars from U.S. investors. And since 1996, Chinese companies have raised $66 billion through initial public offerings. There is no earthly reason why American capital should be financing Chinese companies, especially when Chinese firms grant themselves a degree of opaqueness that hurts investors. According to the Wall Street Journal, "Luckin coffee Inc. is the latest example of a hot Chinese stock that gained a following with American investors before fraud was discovered. Nasdaq has moved to delist Luckin. which went public in 2019 and later said its employees fabricated as much as $310 million in sales."
Posted by:Besoeker

#20  ... and La Famille Loeffler no doubt.
How do I co-invest in Kelly's Fund?
Posted by: Lex   2020-05-25 15:44  

#19  Going to be a great opportunity for the hedge funds and short positions.
Posted by: Marilyn Tojo7566   2020-05-25 15:35  

#18  Vernal Hatrick, no problem at all. Have a good one.
Posted by: Clem   2020-05-25 14:29  

#17  God sent His Orange Prophet to save us from Satan's the CCP's power when we were led astray by the Global Whores of Babble-on
Posted by: Lex   2020-05-25 14:24  

#16  Clem, my apologies, I didn't read you as being sarcastic.
Posted by: Vernal Hatrick   2020-05-25 14:07  

#15  AlanC, agreed. His pushing this (rightly) on the governors (with focus on the Dem guv-nah's) was perfect. IIRC, didn't Grandma Killer Cuomo say early on something like he wasn't going to let DC/Trump push him around? We'll, sometimes you get what you ask for, Killer.

Trump is playing them like a fiddle. Some things may take longer to pan out, but watching the Dems (especially the f'tard ones, but pretty much all of them) squirm is a joyous sight.
Posted by: Clem   2020-05-25 12:48  

#14  TW, that is one of the best things I've seen of DJT. Even though I voted for him (against Hillary???) I expected more of a NY Rino type.

Clem, The Donald has shown quite some mastery of taking the opportunities that present themselves.
All of the big changes take time and planning to try and disarm the constant opposition. As much as I might like to dream about a more dictatorial Trump I really don't want one.

His take on COVID, reverting to Federalism, pushing back on the Dem governors the responsibility they don't want to take.
Posted by: AlanC   2020-05-25 12:32  

#13  Can't the Chinese just get over their 100 years of humiliation and be done with it?!?
Posted by: Clem   2020-05-25 12:07  

#12  If Chinese behavior, the Chinese Virus and military belligerence are certainly reason enough. The nay-sayers in the CoC, Academia, Rino and Democrat Whores are playing the wrong hand in most American's eyes. Take advantage and push em off. "Made in China" needs to be an economic slur
Posted by: Frank G   2020-05-25 12:03  

#11  Nice idea, but the US (and the Walmarts, the Targets, etc., etc.) is in too deep with China. We did it to ourselveds and let it happen for the all-mighty dollar. To just flip a switch and disconnect China from the US economy sounds nice--and I'm not saying there should be no ramifications for China with their shady financial reporting (delist their stocks)--but if it was wrong before and nothing was done, is COVID-19 the excuse to proceed?

The Donald certainly isn't so nice to Xi anymore. And the Donald doesn't do anything sans a reason. Methinks the situation 'back stage' is more serious.
Posted by: Clem   2020-05-25 11:01  

#10   Or maybe it was wrong before too? And there is now a political opportunity to do something about it?

This. Nobody before cared, but this has long been one of Donald Trump’s concerns. And he generally seems to have a list of escalations to achieve his purpose, whatever it might be and to proceed in a stepwise progression. In this case, the purpose has long been, get China to behave like a peaceful trading partner instead of a slowly conquering colossus, but if they are not willing, then to disconnect them from our economy.
Posted by: trailing wife   2020-05-25 10:51  

#9  Uh, no, it never, ever occurred to me. Gee, really.
Posted by: Clem   2020-05-25 10:45  

#8  Or maybe it was wrong before too? And there is now a political opportunity to do something about it? Or did that just never occur to you?
Posted by: Vernal Hatrick   2020-05-25 10:02  

#7  So it was perfectly fine before but now it is suddenly wrong. Hmmmm.
Posted by: Clem   2020-05-25 09:09  

#6  Gromgoru, the bill passed the Senate wirhput objection (not a sharply partisan vote that makes me think it will be stopped in its tracks). And to all of you seemingly complacent about the Chinese ysing our markets, what gives? So what if they should have done this before. Better late than never!
Posted by: Vernal Hatrick   2020-05-25 09:07  

#5  ^ and US companies would have to move out of China... how....terrible...
Posted by: Mercutio   2020-05-25 08:00  

#4  Yeah, but then China will require American companies to meet Chinese accounting standards.
Posted by: Matt   2020-05-25 07:56  

#3  "...have for years..."

And it is suddenly an issue now? Retarded. If US companies can't meet listing requirements, then their stocks are off to the OTC.BB or Pink Sheets. Why wasn't this done with Chinese equities? (rhetorical question)
Posted by: Clem   2020-05-25 07:30  

#2  Really, you mean they're going to delist Disney? When your investments are so dependent upon the Chinese market you do as you are told, aren't you a Chinese franchise?
Posted by: Procopius2k   2020-05-25 06:56  

#1  Believe it when I see it.
Posted by: g(r)omgoru   2020-05-25 02:05  

00:00