Will the U.S. pass the foreign company Accountability Act

category:Finance
 Will the U.S. pass the foreign company Accountability Act


According to statistics, as of October this year, 217 Chinese companies listed on the US stock market, with a total market value of 2.2 trillion US dollars.

Interestingly, investors in the US equity capital markets reacted calmly to the news. After hours, Alibaba shares rose 0.7%, pinduoduo fell 0.8%. Since the beginning of this year, Alibaba has risen by 23%, pinduoduo has increased by 280%, and Weilai automobile has increased by 1094%.

Brendan Ahern, chief investment officer of kraneshars, said in an exclusive interview with first finance reporter that China and the United States will resolve their differences through dialogue and cooperation.

On August 26, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said in an interview with Bloomberg that Chinas attitude in solving the cross-border accounting supervision issues between China and the United States is sincere. The CSRC has proposed a new plan to the public company accounting oversight board (PCAOB) of the United States at the beginning of this month to allow the United States to select any state-owned Chinese company for the second pilot joint inspection. However, the premise of this pilot inspection is that the CSRC will desensitize audit working papers for the sake of national security. These problems are becoming more and more urgent. We are very sincere, but on the other hand, we also attach great importance to protecting information related to national security, Fang said

Ahern believes that for a long time, American media reports have focused on the risk of general stocks in investment, and rarely mentioned the relevant rich returns. He took Netease as an example, which was listed in the United States on June 29, 2000, with a cumulative increase of 13335%. Compared with this, Amazon rose 8573% in the same period.

The return on investing in most of the stocks is much higher than that on some bad apples, he concluded

According to Ernst & Young data, as of the end of September this year, 24 Chinese companies have landed on the US stock market, accounting for half of the cross-border listing of US stocks. On October 30, lufax, a Chinese financial technology company, landed on the New York Stock Exchange and raised $2.36 billion.

According to the Xinhua news agency, on November 20, the head of the relevant departments of the China Securities Regulatory Commission (CSRC) said in response to a reporters question on Sino US cooperation in audit supervision: first, Chinese companies listed in the United States prepare financial statements and fulfill their obligations of information disclosure in accordance with the relevant laws and regulations of the United States, otherwise they will not be able to register with the US regulatory authorities. It is a problem in the field of cross-border regulatory cooperation that the U.S. regulatory authorities are unable to inspect Chinese accounting firms that provide audit services for Chinese companies listed in the United States. It does not mean that Chinese companies do not comply with the relevant laws and regulations of the United States. 2u3001 With regard to Sino US cooperation in audit supervision, our consistent position is to carry out the inspection of accounting firms through the cross-border regulatory cooperation mechanism. On August 4, 2020, the Chinese regulatory authorities, on the basis of actively considering the demands of the US side, sent the fourth version of the proposal on joint inspection of accounting firms to the American public company accounting oversight board (PCAOB). The PCAOB confirmed receipt of the proposal and said it would actively study it. We are looking forward to the US regulators consultation with us on the specific plan as soon as possible. It is believed that with an open and professional attitude, the two sides will certainly reach a consensus on the joint inspection plan, effectively promote Sino US cooperation in audit supervision, and jointly create a good regulatory environment for cross-border listed enterprises.

In response, Chinas Foreign Ministry spokesman Hua Chunying said that the issue once again shows that the United States has adopted a discriminatory policy against Chinese companies and carried out political repression on Chinese enterprises.

Hua Chunying made the above remarks at a regular press conference of the Chinese Ministry of Foreign Affairs on December 2 when answering questions from Reuters reporters. In todays highly globalized capital market, the right way to solve the problem is to strengthen dialogue and cooperation between relevant parties on issues such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors, she said. We firmly oppose the politicization of securities regulation. We hope that the US side can provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States, instead of trying to set up various obstacles.

The US House of Representatives has passed the foreign company Accountability Act, targeting Chinese enterprises?

On Wednesday, the U.S. House of Representatives (AOB) of the U.S. House of Representatives (AOB) can not meet the requirements of the U.S. House of Representatives (AOB) for three consecutive years to prohibit foreign accounting firms from voting. The bill was passed in the US Senate in May this year.

The bill is widely supported by Republicans and Democrats. It has been expected that the U.S. House of representatives will pass legislation this week. Reuters reported that the legislation may prevent some Chinese companies from listing on U.S. exchanges unless the companies comply with U.S. auditing standards.

The foreign senators act was held accountable by the Republican senators actuff08 JohnN.Kennedy uff09And Democratic Senator Chris Van Hollen. The bill, which was voted unanimously in the Senate in May, will be sent to President Donald Trump to sign legislation into effect after it is passed by the house of Representatives.

The securities and Exchange Commission (SEC) is pushing ahead with a plan that could lead to the delisting of some Chinese companies listed in the United States, according to a report on November 17 by the securities and Exchange Commission. According to people familiar with the matter, the US Securities Regulatory Commission will recommend that the exchange be responsible for requiring Chinese companies to comply with the audit verification in the United States, or prohibit listing or request delisting. In August this year, the U.S. Treasury released the report of the U.S. presidents financial market working group on protecting U.S. investors against major risks of Chinese companies on its official website. In view of the jurisdictions that the U.S. public company accounting oversight board (PCAOB), including China, is unable to carry out inspection, it is suggested that the listing threshold of companies from these jurisdictions should be raised, the information disclosure requirements should be strengthened and strengthened It also requires the listed companies in the United States to meet the relevant requirements of PCAOB for inspection no later than January 1, 2022. Since then, officials of the Commission have been acting quickly and the restrictions could come into effect as early as 2022, a source who asked not to be named told the agency.

The securities and Exchange Commission (SEC) is pushing ahead with a plan that could lead to the delisting of some Chinese companies listed in the United States, according to a report on November 17 by the securities and Exchange Commission. According to people familiar with the matter, the US Securities Regulatory Commission will recommend that the exchange be responsible for requiring Chinese companies to comply with the audit verification in the United States, or prohibit listing or request delisting.

In August this year, the U.S. Treasury released the report of the U.S. presidents financial market working group on protecting U.S. investors against major risks of Chinese companies on its official website. In view of the jurisdictions that the U.S. public company accounting oversight board (PCAOB), including China, is unable to carry out inspection, it is suggested that the listing threshold of companies from these jurisdictions should be raised, the information disclosure requirements should be strengthened and strengthened It also requires the listed companies in the United States to meet the relevant requirements of PCAOB for inspection no later than January 1, 2022. Since then, officials of the Commission have been acting quickly and the restrictions could come into effect as early as 2022, a source who asked not to be named told the agency.