US House Unanimously Passes Bill to Delist Chinese Listed Companies... Only Trump's Signature Remains

Possible Delisting of Chinese Companies Not Complying with US Accounting Standards

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. House of Representatives has passed a bill that allows the delisting or restriction of listings of Chinese companies that do not comply with U.S. accounting standards.

According to the Associated Press on the 2nd, the House unanimously passed the "Foreign Holding Company Accountability Act." This bill passed the Senate, where Republicans hold the majority, in May, and has now passed the House, where Democrats hold the majority, indicating bipartisan support.

The bill will take effect once signed by President Donald Trump.

The bill requires companies listed on U.S. stock exchanges to pass accounting audits by the Public Company Accounting Oversight Board (PCAOB) for three consecutive years. Failure to meet this requirement may result in delisting from the New York Stock Exchange or Nasdaq. New listings will also become difficult.

This bill is effectively aimed at China. Chinese companies have been subject to audits by the China Securities Regulatory Commission instead of PCAOB audits under the "U.S.-China Accounting Agreement," which has increased U.S. dissatisfaction.

Chinese companies listed in the U.S. that do not follow U.S. accounting standards have been concerned about the possibility of delisting if this bill takes effect.

This content was produced with the assistance of AI translation services.