US House passes bill that could delist Chinese companies from US stock exchanges
- The US Senate had passed the bill in May
- To become law it needs Trump's signature, which should be a formality
Background on this bill.
- requires Chinese companies to allow US inspectors to review their financial audits
- Beijing has resisted this requirement
- Analyst assessments are generally that a compromise will be reached between the US and China before the law impacts (companies have 3 years to comply)
- For example, there may be a “co-audit” approach - in which US auditors of Chinese companies would sign off on Chinese audits
- The majority of US-listed Chinese companies are already audited by the big four US accounting firms
