News Analysis
Once upon a time, Chinese stocks enjoyed a certain privilege in the United States, a getaway from the scrutiny of the Public Company Accounting Oversight Board (PCAOB), which all foreign companies listed in the United States need to undergo.
Now, the chair of the U.S. Securities and Exchange Commission (SEC) is adamant that Chinese companies will only be allowed to continue trading in the U.S. market if they fully comply with U.S. audit inspections.
This 180-degree change is attributed to the United State’s implementation of the Holding Foreign Companies Accountable Act (HFCAA).
As of May 28, at least 128 Chinese stocks have been incorporated into the SEC’s conclusive list, including Weibo, a Twitter-like social media platform, Baidu, a Google-like search engine, Jingdong, an e-commerce platform, Pinduoduo, an agriculture-centric platform, Bilibili, a video-sharing website, NetEase, an internet service provider, Ctrip.com, online travel agency, Sinovac, a biopharmaceutical company, Huaneng Power, an electric power company, Chalco, a multinational aluminum company, and many other Chinese leading sectors….