About 150 Chinese Communist mainland-based companies could be delisted from US stock exchanges for violating US audit rules. The US Congress hopes that deadline will arrive as soon as next year. It appears US-China markets are decoupling.
The SEC’s list of companies to be audited covers about 60 percent of Chinese Communist Party (CCP)’s companies listed on US stock exchanges, including the online search engine Baidu.
For years, CCP has rejected foreign audits of its companies listed on US stock exchanges. CCP’s maintaining of the audit limitations are based on national security. However, pressure from the SEC could change the stance the CCP has taken.
Congressional Democrats and Republicans are pushing for a tough stance on the CCP. The House of Representatives and the Senate have passed separate legislations calling for the delisting of CCP’s companies that fail to meet audit requirements for two years, instead of the current three-year time limit. If President Biden signs the revised version of the bill, CCP’s companies that do not meet the requirements could face removal from US stock exchanges as early as 2023.
Mr. Miles Guo said, United States and Communist China are rapidly decoupling from each other.