80 Chinese companies are at risk of being delisted

On May 4, 2022, the US Securities and Exchange Commission (SEC) added more than 80 Chinese companies, including JD.com and Pinduoduo, to the list of companies that may be delisted from US exchanges. .

The reason is that Beijing refuses to allow auditors to access the books of these enterprises to check the operational and financial situation.

Law in the US requires businesses listed on US stock exchanges to prove they are not under the control of a foreign government.

If a company fails to prove this, or the Public Companies Accounting Oversight Committee (PCAOB) is unable to audit them for 3 consecutive years for verification, its shares will be delisted from the public. US stock exchange.

China Petroleum & Chemical Corp., JinkoSolar Holding, NetEase and NIO were included in the list.

US authorities will control about 200 companies listed on the New York Stock Exchange, whose parent companies are located in China and Hong Kong.

The US and China have been at odds for the past two decades over a requirement that all US-listed companies have their books audited by the country.

Companies being delisted means they will have to leave the NYSE and Nasdaq as early as 2024.

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