Senate Passes Bill to Delist Chinese Companies From Exchanges

[OneCrazyDiamond]

Source: Bloomberg

The Senate approved by unanimous consent Wednesday legislation that could bar some Chinese companies from being listed on U.S. stock exchanges amid increasingly tense relations between the world’s two largest economies.

The bill, introduced by Senator John Kennedy, a Republican from Louisiana, and Chris Van Hollen, a Democrat from Maryland, would require companies to certify that they are not under the control of a foreign government.

If a company can’t certify that it is not under such control or the Public Company Accounting Oversight Board isn’t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company’s securities would be banned from the exchanges.

Read more: https://www.bloomberg.com/news/articles/2020-05-20/senate-passes-bill-to-delist-chinese-companies-from-exchanges

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Why would the SEC make a deal that hides company data from investors?

[Wellstone ruled]

1. Does this mean Smithfield Foods

gets the boot ? Hope so,or at least broken up and sold to American Operators.

[Scalded Nun]

2. Gee, that is harsher than what they require from this president

[Ford_Prefect]

5. What about Ivanka's trademark deal??

[George II]

3. This is really no big deal, and it appears the Bloomberg headline is misleading....

I don't think this is a bill that would delist Chinese companies. It applies to ALL companies from ANY country*.

*can't verify that because the article is on a pay site.

[progree]

10. I googled "senate bill delist" and every headline had "Chinese companies" and no others in it

https://www.google.com/search?q=senate+bill+delist&oq=senate+bill+delist&aqs=chrome..69i57j0l2j69i61l2.10985j0j7&sourceid=chrome&ie=UTF-8

[George II]

12. I looked into it, and yes it targets only Chinese companies (could be indirectly)....

China apparently is the only country that doesn't allows auditors' data to leave the country.

[melm00se]

11. From Barrons

• The Senate unanimously passed legislation that could bar many Chinese companies from publicly listing their shares on U.S. exchanges if they do not use American accounting standards. Alibaba Group (ticker: BABA) shares listed on the New York stock exchange dropped 2% in reaction to the measure clearing the upper chamber. A House vote has not yet been scheduled. The bill would require foreign companies to use U.S. accounting standards and allow the Public Company Accounting Oversight Board to audit certain accounting documents and, if they do not, to certify that the company is not owned by the government.


here is the Congressional page of the bill in question

https://www.congress.gov/bill/116th-congress/senate-bill/945?q=%7B%22search%22%3A%5B%22S.945%22%5D%7D&s=2&r=1

[Joe Mauriceovich]

4. HIDING is This Administration's Go-To Option

And the wet spaghetti Senate has its head up its ass.

[Vinca]

6. Don't these people realize where many of our drugs and medical equipment come from?

They keep stirring the pot with China and one of these days China is going to say "you're on your own."

[The Mouth]

9. we NEED to be on our own

the sooner the better.
We *CANNOT* allow ourselves to remain in the position we are in vis a vis dependent on another country such as China.

[Vinca]

14. I agree, but now is a rather inconvenient time to start winging it.

[The Mouth]

16. Not like we have a choice

We can do it.

I might be a 'libtard' to them, but I have more faith in my country than most of the damned deplorables.

[roamer65]

15. Just wait until China embargoes rare earth elements.

Game over.

[The Mouth]

17. We will have NO choice but to work around this.

No choice at all.

[still_one]

7. Stupid dumb asses

[progree]

8. I thought this doesn't apply to me, then I remembered I have an Emerging Markets Fund

Vanguard's Emerging Market Index Fund (VEMAX) and ETF (VWO) - 43% of it's holdings are Chinese companies.

Then I've additionally got these of which the first two I'm sure is loaded to the gills with them.
AIA = iShares Asia 50 ETF,
AAXJ = iShares MSCI All Country Asia ex Japan ETF,
VTIAX = Vanguard Total International Index Fund,
SWISX = Schwab International Index Fund

Oh well, swell. They say "life sucks, and then you die"

[House of Roberts]

13. So, is it not legal to purchase foreign securities from foreign exchanges?

This just moves their trading offshore, where there is even less transparency.