Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Reactions to new U.S. audit law that could see Chinese firms kicked off U.S. exchanges

12/03/2020 | 06:28am EST
FILE PHOTO: Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in New York

(Reuters) - U.S. President Donald Trump is expected to soon sign into law a bill that will allow the United States to kick Chinese companies off its exchanges if they fail to comply with the U.S. Public Accounting Oversight Board's audits for three years in a row.

Chinese authorities have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns.

If they do not bend, then there may be little the companies themselves can do to prevent a delisting, although some analysts expect U.S. and Chinese regulators to reach a compromise sometime in the next three years.

STEPHEN CHAN, PARTNER AT LAW FIRM DECHERTS, HONG KONG:

"With the House now having passed the bill and the executive order blocking certain U.S. investments in Chinese companies which the U.S considers to be owned or controlled by Chinese military, I would expect more U.S. listed Chinese companies to seek a secondary listing in Hong Kong or elsewhere."

"Also Chinese companies considering a U.S. listing may seriously give some thoughts on listing in other jurisdictions, including Hong Kong."

RICHARD JI, FOUNDER OF HONG KONG-BASED ALL-STAR INVESTMENTS:

"One thing is certain - companies who were originally planning to list in the U.S. might be now considering coming to Hong Kong instead. Ironically Hong Kong has become the beneficiary of this."

SUMEET SINGH, AEQUITAS RESEARCH PARTNER WHO PUBLISHES ON SMARTKARMA, SINGAPORE:

"China is trying to develop its own financial markets, it's not in their interest to make any concessions. By not doing so they will force their companies to stick closer to home like Hong Kong, Shanghai, Shenzhen, that is good for their own markets.

"It will probably and already has impacted the pipeline with some new techs firms like Bytedance and Didi (which) are now much more likely to list in Hong Kong."

FRANK BI, PARTNER AT LAW FIRM ASHURST, HONG KONG:

"I think it will be likely the two governments and regulators will discuss some alternative approaches."

"But in the near term, more listed Chinese companies will look for a homecoming listing on the Hong Kong Stock Exchange and fewer Chinese companies considering a listing will actively pursue that on the U.S. markets."

JASON ELDER, PARTNER AT LAW FIRM MAYER BROWN, HONG KONG:

"The U.S. markets remain extraordinarily deep pools of liquidity and sector expertise that produce strong valuations for quality issuers. PRC-based companies will continue give considerable weight to the many commercial advantages of being listed in the United States."

"Importantly, the legislation contains a three-year 'phase-in' period for compliance, unlike other proposals being considered.  This transition should be ample time for the SEC, PCAOB and relevant PRC regulators to reach a compromise regarding the auditor oversight and financial transparency issues."

(Reporting by Scott Murdoch and Kane Wu in Hong Kong; Editing by Sumeet Chatterjee and Edwina Gibbs)


© Reuters 2020
Latest news "Economy & Forex"
03:52aEquities correction coming after "extreme" rally, inflows - BofA
RE
03:50aEquities correction coming after "extreme" rally, inflows - BofA
RE
03:49aChina's antitrust moves not aimed at private sector, specific firms, regulator says
RE
03:46aMINISTRY OF DEFENSE OF RUSSIAN FEDERATION : Russian Defence Minister General of the Army Sergei Shoigu held talks with the Commander-in-Chief of the Myanmar Armed Forces, Senior General Min Aung Hlaing
PU
03:45aHamburg eyes 100 MW green hydrogen project with Shell, Mitsubishi, Vattenfall
RE
03:43aHungary buys Russia's Sputnik V vaccine, first in EU, minister says
RE
03:37aNissan news is a vote of confidence in Britain, PM Johnson says
RE
03:34aHong Kong stocks fall as China's composite index slips when global rally pauses
RE
03:31aKenyan shilling inches down as dollar demand ticks up
RE
03:30aLockdown dampens German private sector activity in January - PMI
RE
Latest news "Economy & Forex"