Posted on 08/10/2020 6:42:51 PM PDT by SeekAndFind
WASHINGTON—A rising number of Chinese companies are considering delisting from U.S. stock exchanges as Washington increases its crackdown on foreign companies that fail to comply with U.S. audit standards.
Chinese online travel giant Ctrip is the latest company reportedly exploring going private. The company has held early-stage talks with a number of investors including private equity firms and tech companies about funding its delisting from Nasdaq, Reuters reported.
If the deal goes through, Ctrip would join other companies that are considering delisting from the U.S. exchanges, amid growing tensions between the United States and China.
China’s largest online classifieds platform 58.com and Beijing-based web search company Sogou Inc. are among the companies that recently announced potential delisting of their shares from the New York Stock Exchange (NYSE).
For more than a decade, Chinese companies have taken advantage of U.S. capital markets but operated under lax standards.
Beijing has refused to allow audit inspections of its U.S.-listed companies, citing state secret laws. Hence, these firms do not follow the same disclosure requirements as their U.S. counterparts, causing investors to face risks and losses.
In recent months, the White House and Congress have called for greater oversight of U.S.-listed Chinese companies.
Whistleblower and activist short-seller Dan David believes the Chinese regime will not change its behavior unless Washington pushes for more accountability.
“My negotiations over the last 10 or 15 years in China have been that you really have to push things to the edge before there’s any movement. I think [Chinese firms] are going to challenge this to the last minute. I know they’re lobbying Congress” through their U.S. business partners, David told The Epoch Times.
In “The China Hustle,” a documentary released in 2018, David explained how the Chinese companies mislead U.S. investors through overstating their operations, revenues, and profits.
(Excerpt) Read more at theepochtimes.com ...
Interesting to see where this goes......
Good luck with that China.
China Yuchai Diesel (CYD). Ha hahahahaaaa....
China just says "oops it got away from Wuhan , SO SOLLY CHAWY"
Good. We do not need Chinese firms diluting what little capitalism that remains in America.
So what’s the downside of this
It’s what I want. my family and I sold off all Chinese holdings.
Alibaba?
Good. Get rid of these cheating, non-compliant crooks.
bkmk
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