US Senate passes bill that puts some Chinese listings at risk

Senate passes bill removing rogue Chinese firms from US stock exchanges

"Exchange-traded funds that allow investors to bet on Chinese companies were knocked lower midday Wednesday after the U.S. Senate approved sweeping new legislation that could ultimately bar many Chinese companies from listing shares on U.S. exchanges", a MarketWatch report said.

The bill applies to all foreign companies, but is targeted at China, and follows intense criticism of Beijing by Mr Trump and other U.S. politicians. The securities of the company would be barred from the stock exchange if the Public Company Accounting Oversight Board (PCAOB) is not able to audit the firm for three straight years so as to determine that it is not under the foreign government's control.

Van Hollen said: "We just want Chinese companies to play by the same rules as everybody else".

"It will be a delicate balance for investors weighing between the risks here", said Jingyi Pan, market strategist at IG Asia Pte.

Mr Trump and officials in his administration argue that China mishandled the coronavirus outbreak in its early stages.

"For the Chinese business, that would mean losing a brand premium of being listed in the U.S. The U.S. stock market has always been viewed as much more transparent than the local markets [in greater China]", said Wu of the EIU. "China ties could trigger considerations of alternatives in Europe and closer to home in Asia".

While not technically part of the government, the PCAOB is overseen by the Securities and Exchange Commission and can inspect audits of Chinese firms that list in the US.

The move comes as the USA has increasingly pitted blame the Asia nation for allowing the coronavirus pandemic to ensnarl virtually every corner of the globe.

Through these two actions, the City of London and Wall Street believe they can get a flight-forward decouple, financially and economically, from China. "The "Chinese exception" of reduced auditing access won't last for long".

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Customers will have to be seated and each must be allowed four square meters (43 square feet) for social distancing. "We have demonstrated our capacity to process people in quarantine", Ms Berejiklian said.

When asked about her plan for the Senate-passed bill, Pelosi firstly highlighted her records of decades in criticizing the Chinese regime's trade policy, human rights records, and Hong Kong policies.

The legislation's focus on Chinese stocks stems from pre-virus concerns that Chinese firms listed on America's exchanges are now not subject to the same investor protection rules and accounting standards as USA companies, leaving small retail investors facing a higher risk of fraud.

According to Reuters, Nasdaq is set to unveil new restrictions on initial public offerings to make it harder for some Chinese companies to debut on its stock exchange.

Though the law could be applied to any foreign company, lawmakers say it is aimed at strengthening disclosure requirements on Chinese firms.

"I would expect the Chinese giants to be safe". But the intensified US-China trade friction is the more fundamental reason.

"All Chinese U.S. -listed entities are potentially impacted over the coming years", he said.

The scandal-hit firm has said it has been co-operating with regulators in the USA and China, who have begun an investigation into the company.

"I don't think it's much of a shock".

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