Seems like an incredibly sensible thing to do given the actions of the CCP and many of its companies that are beholden to the CCP. Many of these companies are dual listed on the HKSE or Shanghai index and may create liquidity problems within those exchanges. For the companies that aren't dual listed, I would imagine that a lot of investors would be SOL.
“China’s actions create an environment ripe for fraud and abuse, increasing the likelihood that China-based US-listed companies will violate the disclosure, auditing or anti-fraud provisions of the Securities Exchange Act,” the officers from states including Pennsylvania, South Carolina and Arizona said in the letter obtained by the Financial Times.
The letter marks the latest move in the US by groups and lawmakers who argue that American money should not be used to help Chinese companies, particularly any with links to the Chinese military.
The officers said the SEC had the authority to delist firms that did not comply with the Securities Exchange Act or relied on auditors in countries where the US Public Company Accounting Oversight Board could not carry out effective inspections.
They noted, for example, that the Chinese Communist party had cracked down on the ability of foreign firms to conduct due diligence on Chinese companies and allowed the use of opaque structures known as variable interest entity arrangements to help “circumvent US regulatory scrutiny”.
www.ft.com
“China’s actions create an environment ripe for fraud and abuse, increasing the likelihood that China-based US-listed companies will violate the disclosure, auditing or anti-fraud provisions of the Securities Exchange Act,” the officers from states including Pennsylvania, South Carolina and Arizona said in the letter obtained by the Financial Times.
The letter marks the latest move in the US by groups and lawmakers who argue that American money should not be used to help Chinese companies, particularly any with links to the Chinese military.
The officers said the SEC had the authority to delist firms that did not comply with the Securities Exchange Act or relied on auditors in countries where the US Public Company Accounting Oversight Board could not carry out effective inspections.
They noted, for example, that the Chinese Communist party had cracked down on the ability of foreign firms to conduct due diligence on Chinese companies and allowed the use of opaque structures known as variable interest entity arrangements to help “circumvent US regulatory scrutiny”.
Top US state Republicans urge SEC to consider delisting Chinese companies
Letter asks regulator to protect American investors from opaque Chinese reporting policies
www.ft.com
