Home>News>World>Asia>The US government aims to restrict the access of Chinese companies to trading on American exchanges

The US government aims to restrict the access of Chinese companies to trading on American exchanges

Asia
21.05.2020
142
The US government aims to restrict the access of Chinese companies to trading on American exchanges

The United States Senate approved a bill that would force the Chinese companies Alibaba and Baidu to leave the US stock exchanges. According to the document, now foreign companies  will have to conduct their activities transparently, and also prove that their activities don’t depend on the governments of the countries where they are registered in order to be listed on the exchange, according to Forbes.

The Senate signed the bill unanimously. As a result, it will be difficult for foreign companies to participate in trading on US exchanges. According to the document, companies that plan to place their own shares on trading floors will have to prove that no state owns their shares. If the organization or the Supervisory Board for the maintenance of financial statements of public companies cannot confirm this, participation in the auction for the next three years will be prohibited.

The bill was presented by Senators of the Republican Party John F. Kennedy and the Democratic Party Chris van Hollen. They believe that there should be uniform rules for all companies, so that the document introduces quite reasonable and feasible innovations that are important for equalizing companies with each other. At the moment, the PRC government hasn’t approved the admission of the Supervisory Board to the audit of its own organizations. In total, 224 companies from states that don’t allow the council to be audited are registered on US exchanges, their total capitalization exceeds $1.8 trillion.

First of all, the innovation will affect organizations from China. American lawmakers excited a riot due to the injection of billions of dollars into large corporations by the Chinese government. As a result, it effectively nullifies the attempts of other tech giants to achieve leadership in the industries related to the development of artificial intelligence, big data processing and self-driving. Despite the gradual recovery of the market, shares of Baidu and Alibaba fell significantly after the announcement of the passage of the bill.

In the future, the tightening of securities trading rules may affect Ant Financial’s plans, as well as ByteDance’s IPO. However, other companies have already resolved this issue by conducting an initial public offering in Hong Kong or planning to relocate it to another country. The appearance of such a bill is not surprising, its discussion began last year.

Before the project comes into force, it must be approved by the House of Representatives, as well as by President Donald Trump.

Author:Елена

Актуальные новости

28.07.2021, 04:43
157
US Bitcoin miner Stronghold files for $100M IPO to fund massive expansion
07.07.2021, 18:18
113
Store Or Not Store Of Value? Three Reports Weigh In On Bitcoin
21.02.2022, 16:24
226
TOP 5 low-cost stocks with great prospects
07.02.2022, 13:48
146
If Microsoft Acquires Activision Blizzard, 3 Trades To Ride The Gaming Tailwinds
24.08.2021, 11:00
341
Opening Bell: Investors Flip-Flop On Risk; Futures, Stocks Climb; Oil Advances
05.06.2021, 13:00
120
Digital Copper, Volume Explosions, Paradigm Shifts and 20 Crypto Jokes
15.03.2022, 12:16
193
If These Are The Best Pot Stocks...
21.05.2021, 14:00
116
SEC Chair Gensler Says Cryptocurrency Exchanges Need More Regulation, Asks Congress to Weigh in
btc
$ 29606
-0.75%
eth
$ 2011.2
-0.8%
xrp
$ 0.416698
-1.38%
busd
$ 0.998875
-0.57%
ltc
$ 66.18
-0.79%