Friday , April 16 2021

Press for Chinese companies listed in the US to comply with financial supervision

The Securities and Exchange Commission of the SEC in Washington, DC, on Thursday, March 28, 2019.

Bill Clark CQ-Roll Call Group | Getty Images

A bipartisan group of US lawmakers introduced a bill Wednesday to force Chinese companies listed on US stock exchanges to undergo regulatory oversight, including securing access to revisions and other steps now limited by Chinese law.

"Beijing should no longer be allowed to protect Chinese companies in the United States from compliance with US laws and regulations for financial transparency and accountability," said Senator Mark Rubio's statement.

Democratic Senator Bob Menendez, who joined the law sponsorship, said: "It's time for the Chinese government to play the same rules as US companies in our financial markets."

The Securities and Exchange Commission and the Public Enterprises Supervision Board issued a warning to investors last year about the difficulties experienced by the EU regulators in auditing the audit work and the practices of China's audit firms that are investigating Chinese companies in the United States .

They said the PCAOB faced obstacles in auditing the audit work for 224 companies in the United States, with a market capitalization of $ 1.8 trillion.

Chinese legislation requires business records and records to be stored and maintained in China and limits the documentation of auditors for work done in China since their transfer outside the country, they say.

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