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................
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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