Posted on 05/28/2020 7:31:54 AM PDT by SeekAndFind
The Senate passed a bill by unanimous consent on Wednesday to take on Chinese companies listed on U.S. exchanges.
The legislation would require the companies to submit to a range of stringent provisions to avoid being booted.
First, they must disclose whether they are owned or controlled by a foreign government. Second, and perhaps most intrusively, they would have to comply with audits from the Public Company Accounting Oversight Board (PCAOB) for three years in a row.
“We just want Chinese companies to play by the same rules as everybody else,” said Sen. Chris Van Hollen (D-MD) during an appearance on Yahoo Finance shortly after the bill passed (video above). “This is an important step forward for transparency,” he said.
Van Hollen has led the effort, known as the Holding Foreign Companies Accountable Act, along with Sen. John Kennedy (R-LA). A mix of other senators like Kevin Cramer of North Dakota, Bob Menendez of New Jersey and Marco Rubio of Florida are co-sponsors.
Currently, companies registered in China and Hong Kong are not subject to PCAOB audits.
A group known as the U.S.-China Economic and Security Review Commission has compiled a list of 156 Chinese companies that are currently listed on the biggest three U.S. stock exchanges. The list includes giants like Alibaba (BABA), Baidu (BIDU) and JD.com (JD).
Van Hollen says the legislation is “designed to protect investors” because the lack of transparency among Chinese companies “exposes American investors to unnecessary risks.”
“It’s asinine that we’re giving Chinese companies the opportunity to exploit hardworking Americans” added Senator Kennedy in a statement.
The bill’s fate is uncertain as it still needs to pass the House of Representatives and be signed into law by Trump,
(Excerpt) Read more at nz.finance.yahoo.com ...
Van Hollen leading the charge should help in the Democratic House.
I think Trump would sign it. The only question is the Democrats. Isn't it interesting the author didn't bother asking for any feedback from Democrat leaders.
submit to a range of stringent provisions. You mean the same that other companies are required to provide.
The DC House of China? Well I can’t imagine how the _representatives_ in the House will vote. Duh.
“The Bill’s Fate is Uncertain in the House” I don’t think so; it’ll go down in flames.
The Communist Democrats will stick with their Communist buddies everywhere.
“...The Communist Democrats will stick with their Communist buddies everywhere....”
After their likely collusion on the virus release and plandemic, they are now more beholden to them than ever before...like forever from now on.
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