#US; #USPresident; #DonaldTrump; #China; #ChinaBan
Washington/Canadian-Media: A legislation into law that could block some Chinese companies from engaging in exchanges in the United States (US) stock market was signed by President Donald Trump on Dec 18, the White House said in a press release.
Donald Trump (left). Image credit: Pixaby
"On Friday, December 18, 2020, the President signed into law: S. 945, the ‘Holding Foreign Companies Accountable Act,’ which requires certain issuers of securities to establish that they are not owned or controlled by a foreign government, specifically if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm that is not subject to inspection by the Board," the release said on Friday.
According to the measure, passed earlier this month by the US House of Representatives and by the Senate in May, foreign companies are required to disclose if they are state-owned or controlled and should comply with US auditing standards , these companies are banned from trading on the US stock market .
This measure would stop China from cheating on the US stock exchanges, said Senator John Kennedy, who introduced the bill in March of 2019, and added that Beijing's failure to comply with US disclosure laws has already impacted integrity of financial markets as well as investor confidence.
Although US has entered into cooperative auditing agreements with foreign regulators, it has excluded China for such an agreement.