The US Congress voted through the new regulations, stipulating that if the US regulators cannot comprehensively review the audit draft of the listed company, these companies are expelled from the buffer time of the New York Stock Exchange and Nasdaq., Shorten up from the original three years to two years.
The U.S. Congress passed the new regulations to shorten the time limit for the elimination of China Stock Exchange from three years to two years, forcing more transparent financial audits in the US listed Chinese company.Interviewed scholars believe that the United States is intending to pressure the Chinese government and Chinese companies to ensure that China cooperates with the audit of Chinese companies listed in the United States as soon as possible.
About 200 companies listed in the United States will be affected
According to Bloomberg, the US Congress passed the new regulations on Friday (December 24), stipulating that if the U.S. regulatory agencies cannot comprehensively review the audit draft of listed companies, these companies have been expelled from the New York Stock Exchange and NasDak's buffer time will be shortened from the original three years to two years.About 200 Hong Kong and Mainland China companies listed in the United States will be affected.
This new provision will be signed by US President Biden in the near future.John Kennedy, a Republican member who promoted legislation, said that the new regulations will give US regulators power and "remind China to abide by rules is not an option."
Erica Williams, chairman of the
PCAOB, also said in a statement that by increasing pressure, the United States has the right to obtain audit drafts and will protect investors.
According to the previous regulations of the United States, foreign companies listed in the United States must submit audit drafts to US regulators for review. If this requirement cannot be met for three consecutive years, it will be forced to delist.However, the Chinese regulatory department believes that the information of the audit drafts of Chinese companies listed in the United States involves national secrets. If the United States is allowed to check, it will threaten national security; China and the United States have been deadlocked on this issue for many years.
In August this year, China and the United States signed an audit supervision cooperation agreement to allow US regulators to review the financial audit of Mainland China and Hong Kong companies listed in the United States.PCAOB confirmed on the 15th of this month that it has obtained full inspection permissions for the audit drafts of mainland China and Hong Kong companies to resolve the risk of delisting in the stock market. The new regulations passed by the United States may once again allow some companies to face new delisting stocks again.risk.
However, Li Mingjiang, an associate professor at the Lajiery South International Research Institute of Nanyang University of Technology in Singapore, studied and judged in an interview with Lianhe Morning Post. The above changes will not bring any negative effects or obstacles to the audit.Let Chinese enterprises and Chinese governments cooperate with the requirements of the US regulatory authorities in order to complete all audit work as soon as possible.
Li Mingjiang believes that since China and the United States have signed an audit agreement, the follow -up review work is also gradually ongoing, showing that both China and the United States are willing to resolve audit disputes. The completion of the audit work is only time and procedure.
