Countdown Starts on Chinese Company Delistings After Long U.S.-China Audit Fight

U.S. securities regulators have begun a countdown that will power a lot of Chinese businesses to depart American inventory exchanges, immediately after a lengthy deadlock amongst Washington and Beijing about obtain to the companies’ audit information.

The action will accelerate the decoupling of the world’s two biggest economies and have an impact on buyers that have securities in a lot more than 200 U.S.-outlined Chinese businesses with a blended market price of around $2 trillion.

In late 2020, then-President

Donald Trump

signed a regulation that bans the investing of securities in overseas businesses whose audit doing work papers can not be inspected by U.S. regulators for a few yrs in a row. The passing of the Holding Overseas Providers Accountable Act followed almost a ten years of unsuccessful attempts by regulators in the U.S. and China to solve sharply differing expectations about how such audit inspections would be carried out.

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