Trump Signs Law Restricting Placement of Chinese Shares
US President Donald Trump signed a law aimed to restrict Chinese shares, in particular, at limiting the placement of shares of Chinese companies on American exchanges. This is stated in a statement by the White House, released on Friday, December 18.
According to the Law on Accountability of Foreign Companies, a foreign business must submit reports to US regulators, TASS reports.
Now, if a company is unable to meet audit requirements within three years, it will lose access to the exchange. In addition, the enterprise is obliged to notify the US government of the existence of state control by foreign authorities.
The Chinese Securities Regulatory Committee reported in early December that Beijing considers the law to be discriminatory. According to the Chinese side, the law is actually aimed at creating barriers to the placement of shares of Chinese companies on American stock exchanges.
In early December, it was reported that the US House of Representatives voted unanimously in favor of restrictions against Chinese companies. Such a decision may lead to the fact that a number of firms may leave the US stock market. The bill targets Chinese companies that deny American regulators access to audit reports.
On November 16, Axios, citing sources, reported that US President Donald Trump intends to take tough measures against China, including sanctions, before the end of his presidential term.