U.S. Moves to Tighten Disclosure Requirements for Chinese Listings
- Currently listed companies would have until 2022 to comply
- Report comes amid rising tensions between U.S. and China
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A high-powered group of U.S. regulators said stock exchanges should set new rules that could trigger the delisting of Chinese companies, following mounting concerns that investors are being exposed to frauds.
The President’s Working Group on Financial Markets said Thursday that in order to trade on a U.S. exchange, companies must grant American regulators access to their audit work papers. The group hasn’t determined how to enforce the guidelines, said a senior Treasury Department official who briefed reporters on the condition of anonymity. While the final penalty would be removal from U.S. exchanges, the Treasury and Securities and Exchange Commission would establish how binding the mandate is in implementing the rules.