- Why do Chinese companies pillage American investors? Because American rules — more precisely, exceptions to them — essentially invite them to do so.
- Unfortunately, China is rapidly moving in the wrong direction. In March, it took a big step backward by amending its securities law to further impede the sharing of audit information with overseas regulators.
Full story: https://www.gatestoneinstitute.org/16352/wall-street-china-fraud
WASHINGTON (Reuters) – China on Saturday called for frank dialogue and closer cooperation in reaction to news that Trump administration officials had urged the U.S. president to de list Chinese companies that trade on U.S. exchanges and fail to meet its auditing requirements by January 2022
U.S. Securities and Exchange Commission and Treasury officials revealed the development on Thursday, which came after President Donald Trump tasked a group of key advisers, including Treasury Secretary Steve Mnuchin and SEC Chairman Jay Clayton, with drafting a report with recommendations to protect U.S. investors from Chinese companies whose audit documents have long been kept from U.S. regulators.
The development also came amid pressure from Congress to crack down on Chinese companies that avail themselves of U.S. capital markets but do not comply with U.S. rules faced by American rivals.
“We are simply leveling the playing field, holding Chinese firms listed in the U.S. to the same standards as everyone else,” a Treasury official told reporters in a briefing call.
Full story: https://www.reuters.com/article/us-usa-china-audits/trump-advisers-urge-delisting-of-u-s-listed-chinese-firms-that-fail-to-meet-audit-standards-idUSKCN25235B