China won’t easily remove its listed companies from U.S. stock exchanges because these companies hold significant meaning to the Chinese Communist Party (CCP). At the same time, Chinese authorities are unwilling to comply with U.S. audit requirements because such audits might uncover fraud and the fact that these companies are state-controlled, which violates U.S. regulations.
The China Securities Regulatory Commission (CSRC) announced a major decision to amend a regulation governing the listing of Chinese companies abroad on April 2, in response to the rising threat of full delisting of Chinese stocks in the United States and the U.S. Securities and Exchange Commission (SEC) Chairman’s statement that the Foreign Company Accountability Act will be strictly enforced.
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