Dec. 23, 2020 - Epoch Times
03:42
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| Time | Text |
|---|---|
| President Donald Trump signed legislation on December 18 that could delist some Chinese companies from U.S. stock exchanges, as the new bill requires all foreign companies listed on U.S. exchange must adhere to American auditing standards. | |
| The Holding Foreign Companies Accountable Act bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversights Board's audits for three years in a row. | |
| It also requires that these companies must disclose whether or not they are owned or controlled by a foreign government. | |
| More than 210 China stocks listed in the United States now face the fate of delisting, such as Alibaba, JD, China Mobile, NetEase, and Beidu. | |
| In the past, Chinese authorities have repeatedly refused to let overseas regulators inspect Chinese firms, citing national security and privacy reasons. | |
| Gong Xiongli, a well-known independent economist in mainland China, believes that it's a historic move for President Trump to pass this bill. | |
| The signing of this bill is one of the biggest measures on China-US trade relations. | |
| It means capital from China, from Chinese individuals or from the Chinese Communist Party organizations can no longer enter the United States unless it is subject to stricter scrutiny. | |
| This may be a historic change. | |
| This may be the greatest action on US-China relations in more than 40 years. | |
| Gao Yu, a Beijing-based veteran journalist, said the introduction of the new bill means the United States will no longer tolerate Chinese firms' routine practice of making false financial reports. | |
| Former U.S. House of Representatives Speaker Newt Gingrich once used the phrase China's con game when referring to the fraudulent behavior of Chinese companies listed in the United States. | |
| Gingrich said that Chinese scam companies are not a small number. | |
| His friend, Dan David, the founder of Wolfpike Research in New York, risked going to jail to investigate Chinese companies. | |
| Of the first 30 companies investigated, he found that all were swindlers. | |
| On May 20th, the bill was passed in the US Senate as the fraudulent case of Luckin Coffee was put under the spotlight. | |
| Known as China's Starbucks, Lock-In Coffee was exposed to have fabricated its sales figures. | |
| Investors have since become more wary of Chinese firms listed on the US market. | |
| In the past six months, ten Chinese internet companies listed in the United States, including JD.com, NetEase, and Alibaba, returned to Hong Kong for a second listing. | |
| Alibaba's Ant Group made the headlines when its initial offering was halted by Chinese authorities in November. | |
| Gao believes that when other Chinese firms return to Hong Kong for listing, they may not encounter the same situation as Alibaba's Jack Ma. | |
| However, Chinese authorities surely have the ability to interfere when Chinese firms seek an IPO in Hong Kong. | |
| Gong Xiongli pointed out that the signing of the new bill into law We'll serve as a bellwether for other international capital markets. | |
| When Chinese firms try to enter international markets, those with political and communist party backgrounds may be barred from the capital markets. | |
| The U.S. capital market is a bellwether for European capital markets. | |
| Think about it. | |
| More than 40 developed countries are involved. | |
| How important is this? | |
| It is truly a historic move. |
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