Delisting push

D

dealmaker

Delisting push

The U.S. Securities and Exchange Commission will by year-end propose a regulation that would force companies to delist from U.S. stock exchanges if they don't comply with the country's auditing rules. This is to do with China blocking U.S. regulators from reviewing audits of companies such as Alibaba and Baidu. Given the timing, it's likely that the new rule would need to be finalized under President-elect Joe Biden's new SEC leadership. Fortune
 
And they should. Provided all listed companies have to comply with the rules, there's no reason Chinese companies don't have to, particulary since we know of quite a number of these that have totally made up numbers.
 
dealmaker said:
Delisting push

The U.S. Securities and Exchange Commission will by year-end propose a regulation that would force companies to delist from U.S. stock exchanges if they don't comply with the country's auditing rules. This is to do with China blocking U.S. regulators from reviewing audits of companies such as Alibaba and Baidu. Given the timing, it's likely that the new rule would need to be finalized under President-elect Joe Biden's new SEC leadership. Fortune
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I thought this rule is already in place. It makes sense and about time. I mean if they are not willing to comply with the auditing rules that apply to all North American companies, why should they be allowed to be traded on our exchanges? I mean do we allow North American companies who do not use GAAP to be listed on our exchanges? If not, then why should we make special exceptions for foreign companies? Just because they are foreign? This is not fair to all of the North American companies who comply with the stringent accounting practices and auditing rules. And this is certainly not responsible for North American investors. American investor public including pension funds that manage people's money for their retirement has suffered losses of several hundred millions of dollars because of Chinese companies' fraudulent accounting practices. And regulatory bodies like SEC weren't even able to prosecute them because they were in China. WHY were they still being allowed to be listed? They should be delisted a long time ago.
 
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