BILL FORCING CHINESE FIRMS TO MEET US ACCOUNTING STANDARDS PASSES CONGRESS
The US House of Representatives passed legislation on Wednesday (Dec 2) that could prevent Chinese companies from listing their shares on US exchanges unless they adhere to US auditing standards.
The measure passed by unanimous voice vote, after passing the Senate earlier this year, sending it to the White House which said President Donald Trump is expected to sign it into law.
The Holding Foreign Companies Accountable Act bars securities of foreign companies from being listed on any US exchange if they have failed to comply with the US Public Accounting Oversight Board’s audits for three years in a row.
While it applies to companies from any country, the legislation targets Chinese companies such as Alibaba, tech firm Pinduoduo and oil giant PetroChina.
Measures taking a harder line on Chinese business and trade practices generally pass Congress with large margins, as both Democrats and Trump’s fellow Republicans echo the president’s hard line against Beijing.