Senate passes bill that may force Chinese firms to delist from US exchanges

Wednesday, 20. May 2020 18:39

The United States Senate unanimously passed the Holding Foreign Companies Accountable Act on Wednesday that could lead to the delisting of Chinese companies from US exchanges. The bill aims to increase oversight of Chinese companies by insisting that if the Public Company Accounting Oversight Board is unable to inspect reports of accounting firms used by stock issuers for three years, the firm will have to delist from US exchanges.

However, the legislation, which is also backed by the Trump administration, is yet to pass the House of Representatives.

On Wall Street, shares fell 4.07% at 12:43 pm ET and Baidu shares were down 3.01% at 12:44 pm ET. Alibaba was down 2.5% at 12:48 pm ET.

Related Links: Inc.Alibaba Group Holding Ltd.Baidu Inc.
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