[ad_1]
The House of Representatives on Wednesday handed a invoice that may stop corporations that refuse to open their books to US accounting regulators from buying and selling on US inventory exchanges. The laws received unanimous backing within the Senate earlier this 12 months, which means it solely wants President Donald Trump’s signature to turn into legislation.
The invoice would apply to any international firm, however the focus on China is apparent. Beijing has resisted such scrutiny. It requires corporations which are traded abroad to maintain their audit papers in mainland China, the place they can’t be examined by international companies. All US-listed public corporations would even be required to disclose whether or not they’re owned or managed by a international authorities, together with China’s Communist get together.
“Enactment of any of such legislations or other efforts to increase US regulatory access to audit information could cause investor uncertainty for affected issuers, including us, the market price of our [US shares] could be adversely affected, and we could be delisted if we are unable” to meet necessities in time, JD stated in filings to the US Securities and Exchange Commission.
Beijing has made its dissatisfaction with the US laws evident. Asked Wednesday in regards to the House vote, Ministry of Foreign Affairs spokesperson Hua Chunying stated “we firmly oppose politicizing securities regulation.”
“We hope the US side can provide a fair, just and non-discriminatory environment for foreign companies to invest and operate in the US, instead of trying to set up various barriers,” Hua informed reporters.
Should the invoice turn into legislation, its fast penalties aren’t completely clear. Analysts at Goldman Sachs identified in a analysis observe earlier this 12 months that the laws would solely power companies to de-list if they might not be audited for 3 consecutive years.
Still, even the potential for tighter regulatory scrutiny was seemingly to push extra corporations to twin listing in Hong Kong, the analysts added.
[ad_2]
Source hyperlink