US Senate: Passes US delisting bill for Chinese companies: List of candidate companies (partial)
Companies under the control of foreign governments ban listing on the US stock market
House of Representatives Sherman submits similar bill in House
US Senate:
On May 20, we unanimously passed a bill that could ban Chinese companies from listing their shares on the US stock exchange, such as Alibaba Group Holding and Baidu.
The bill was submitted by Rep. John Kennedy (Republic) and Rep. Chris Vanhoren (Democrat).
Content that asks companies to prove that they are not under the control of a foreign government.
Can companies prove it,
PCAOB audits the company for three consecutive yearsIf you cannot determine unless you are under the control of the foreign government,
Listing of the company’s securities is prohibited.Bloomberg
https://www.bloomberg.co.jp/news/articles/2020-05-20/QANBNZT0G1KX01
U.S. Senate Passes Bill to Require Listed Chinese Companies to Certify No Foreign Government Control
Posted on 05/20/2020
The U.S. Senate approved by unanimous consent legislation
that would impact Chinese companies being listed on U.S. stock exchanges.
The bill would require Chinese companies to certify that they have no foreign government control.
Failing to pass this
could force Chinese companies to delist from U.S. stock exchanges.
The bill
was introduced by U.S. Senator John Kennedy, a Republican from Louisiana, and Senator Chris Van Hollen, a Democrat from Maryland.
The legislation
is called the Holding Foreign Companies Accountable Act.
In detail, the proposed statute
would mandate a foreign company to certify it’s not owned or manipulated by a foreign government if the Public Company
Accounting Oversight Board is unable to audit specified reports because the foreign company uses a foreign accounting firm not subject to inspection by the board.
If the non-profit oversight board, which is overseen by the U.S. Securities and Exchange Commission,
can’t look into the foreign company’s accounting firm for a period of 3 years, then the issuer’s securities would be banned from trading on a national exchange.
Some holdings by pensions and sovereign wealth funds include
- Baidu Inc.,
- TAL Education,
- e-commerce giant Alibaba Group Holding,
- Tencent Holdings Limited,
- China Petroleum & Chemical Corporation (Sinopec),
- Weibo Corporation, and
- China Telecom Corporation, which have U.S. listings.
Here are more stocks that could be impacted (not a full list)
Ctrip.Com JD.Com Inc ADR (JD) Kali Yum China Holdings Baozun Inc GSX Techedu A GDS Holdings
BEST Bitauto Huazhu NetEase 58Com Inc Adr JinkoSolar Qutoutiao Inc. Pinduoduo SINA Corp
Autohome ADR SOGOU LexinFintech Holdings Noah BeiGene Luokung Tech Phoenix New Media
Byzen Digital China Life Insurance ADR Daqo New Energy ADR Fang Holdings Recon Technology
iQIYI Qudian Inc Luckin Coffee Tencent Music Entertainment and so on.
SWFI