Translated by MOS Media Team: CloudSky
RFI quoted [Liberty Times] on September 18 as saying: Gary Gensler, chairman of the Securities and Exchange Commission (SEC), wrote to the Wall Street Journal. He said that If Chinese companies listed in the United States refuse to comply with the U.S. audit rules in accordance with the “Foreign Company Accountability Act” passed by the U.S. Congress last year, the SEC will force 270 Chinese shares to delist in early 2024.
The SEC expects to announce the list of relevant enterprises early next year.
According to the “Accountability Law”, if the foreign government prohibits the “Public Company Accounting Oversight Board” (PCAOB) of the SEC from reviewing the country’s Listed Companies in the United States for three consecutive years, the listed companies will be prohibited from trading in the United States. Gensler said that the SEC has taken all necessary actions to implement the law, and the PCAOB will complete the formulation of relevant rules by the end of this year. The 3-year period starts from 2021.
Gensler also pointed out that the U.S. Senate passed the “Accelerated Foreign Company Accountability Act” in June this year. Once promulgated, the three-year period will be reduced to two years. In addition to ensuring that PCAOB can audit these listed companies, the SEC also hopes that U.S. investors will fully understand the risks of investing these Chinese Concept Shares. The SEC recently suspended the processing of IPO applications of Chinese companies in order to cooperate with relevant companies to ensure that they understand the relevant risks.
SEC chairman Gensler stressed that all companies, which are seeking to raise funds in the U.S. capital market, should abide by U.S. rules. No matter these companies are registered in California, the Cayman Islands or China. The U.S. Congress, the SEC and PCAOB take measures to protect investors in the hope of achieving this goal.
Proofread and Edited by: Paratrooper
Posted by: Paratrooper
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