Trump advisers urge 2022 delisting of U.S.-listed Chinese cos that fail to meet U.S. audit standardsby Alexandra Alper
WASHINGTON (Aug 7): Trump administration officials have urged the president to delist Chinese companies that trade on U.S. exchanges and fail to meet U.S. auditing requirements by
January 2022, Securities and Exchange Commission and Treasury officials said on Thursday.
The remarks came after President Donald Trump tasked a group of key advisers, including Treasury Secretary Steve Mnuchin and SEC Chairman Jay Clayton, with drafting a report with recommendations to protect U.S. investors from Chinese companies whose audit documents have long been kept from U.S. regulators.
The U.S. Senate unanimously passed legislation in May that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they follow standards for U.S. audits and regulations.
The administration's recommendations, if implemented via an SEC rulemaking process, would give Chinese companies already listed in the United States until Jan. 1, 2022, to ensure the U.S. auditing watchdog, known as the PCAOB, has access to their audit documents.
They can also provide a "co-audit," for example, performed by a U.S. parent company of the China-based affiliate tasked with auditing the Chinese firm. However,
companies seeking to list in the United States for the first time will need to comply immediately, the officials said.
A state Department official told Reuters the administration plans to soon scrap a 2013 agreement between U.S. and Chinese auditing authorities to set up a process for the PCAOB to seek documents in enforcement cases against Chinese auditors.
The PCAOB has long complained of China’s failure to grant requests, giving it scant insight into audits of Chinese firms that trade on U.S. exchanges.
Source: The Edge
https://www.theedgemarkets.com/article/ ... -standards
It's all about "how much you made when you were right" & "how little you lost when you were wrong"