News Analysis Over 200 Chinese companies, with a combined value of at least $1.1 trillion, face the risk of getting delisted from U.S. securities exchanges for violating accounting rules such as disclosure requirements. Despite past refusals and harsh words to the contrary, Chinese regulators have signaled possible cooperation with the U.S. Securities and Exchange Commission (SEC), although no formal agreements have been made. As of May 2021, the SEC reported that 248 Chinese companies totaling $2.1 trillion were listed on U.S. exchanges. By allowing Chinese companies to list, the United States grants Beijing access to U.S. investment capital—which ultimately fuels China’s technological development and military expansion. Rather than treating this access as a privilege, Beijing demands that U.S. regulators ignore mandatory transparency requirements. Over the past several years, the United States has passed several new disclosure laws and increased its enforcement, threatening violators with delisting. Losing access to U.S. investment …
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