Beijing Blasts New SEC Delisting Rules as ‘Step to Hobble’ Chinese Firms
China blasted the SEC’s adoption of final rules under the 2020 Holding Foreign Companies Accountable Act that authorize the agency to delist the stocks of Chinese companies whose auditors withhold materials from U.S. regulatory inspection. “We have a basic bargain…
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in our securities regime,” said SEC Chair Gary Gensler Thursday. “If you want to issue public securities in the U.S., the firms that audit your books have to be subject to inspection.” A Chinese Foreign Affairs Ministry spokesperson called the SEC’s move “another step to hobble Chinese enterprises for political purposes and to suppress and contain China’s development.” The rules “will deprive American investors of the opportunity to invest in many of the world’s fastest growing companies,” he said Friday.