fbpx
Qatar v. Ecuador to kick off FIFA World Cup 2022™ on 20 NovemberRead more Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster TradeRead more Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more

US proposes tougher Wall Street rules for China firms

Print Friendly and PDF

Aug 07, 2020 - 08:01 AM

NEW YORK — US officials on Thursday proposed toughening rules for Chinese companies listed on American stock exchanges as recent scandals have prompted concerns about the reliability of some of the firms’ documents.

The companies’ auditors would have to share their work papers with American regulators under the proposal from a working group led by Treasury Secretary Steven Mnuchin.

Firms already on Wall Street would have until 2022 to comply or lose their listing.

“The United States is the premier jurisdiction in the world for raising capital, and we will not compromise on the core principles that underpin investor confidence in our capital markets,” said a Treasury Department statement.

The group, which includes Federal Reserve Chair Jerome Powell, also proposed strengthening risk disclosures to investors about companies or funds from countries that do not provide “sufficient” access to documents.

The US Securities and Exchange Commission (SEC), which oversees US equity markets, would be tasked with implementing the recommendations.

Several Wall Street-listed Chinese companies have been involved in scandals in recent months, including coffeehouse chain Luckin Coffee. The Starbucks rival revealed in April that one of its executives was accused of faking sales figures.

The recommendations come as tensions spike between the world’s top two economies, with a struggle over the video sharing platform TikTok being the latest flashpoint.

However, US media have reported that negotiators from the two nations are due to talk August 15 about the partial trade deal inked in January.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.