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De Omnibus Dubitandum - Lux Veritas

Wednesday, August 12, 2020

Chinese Firms Delisting From NYSE, Nasdaq Amid Growing US Pressure

By Emel Akan August 10, 2020
 
WASHINGTON—A rising number of Chinese companies are considering delisting from the U.S. stock exchanges as Washington increases its crackdown on foreign companies that fail to comply with U.S. audit standards.  Chinese online travel giant Ctrip is the latest company reportedly exploring going private. The company has held early-stage talks with a number of investors including private equity firms and tech companies about funding its delisting from Nasdaq, Reuters reported...........

For more than a decade, Chinese companies have taken advantage of U.S. capital markets but operated under lax standards.  Beijing has refused to allow audit inspections of its U.S.-listed companies, citing state secret laws. Hence, these firms do not follow the same disclosure requirements as their U.S. counterparts, causing investors to face risks and losses........I think [Chinese firms] are going to challenge this to the last minute. I know they’re lobbying Congress” through their U.S. business partners, David told The Epoch Times................
The scandal was a wake-up call for U.S. lawmakers, regulators, and investors about the extreme risks Chinese companies pose to U.S. capital markets, Block told CNBC............To Read More.....


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