The initiatives are a recommendation from the US President’s Financial Markets Working Group, which aims to protect US investors from what the Trump administration calls risks from Chinese companies.
According to Interfax, Chinese companies whose shares are traded in the United States will be forced to delist if they fail to comply with the audit requirements, follows from the plan recommended by the administration of US President Donald Trump.
“The initiative aims to resolve a long-running dispute over the inability of US regulators to assess the audit process of Chinese companies that sell their shares on the US market, writes The Wall Street Journal. The Senate in May approved a bill that would oblige non-compliant Chinese companies to delist shares in the States within three years and find a new exchange”, – the statement said.
The new plan calls for Chinese companies that are already listed on the New York Stock Exchange and the Nasdaq to meet requirements by 2022.
Otherwise, they will have to leave these sites.