Washington: The American Parliament has passed a bill, under which companies that do not give their audit information to the market regulator for three consecutive years (Companies) in the American stock market Will not be listed. After this move, Chinese companies that hoard information by fraud will have to delist from the US stock markets.
Bilateral Stake Foreign Company Accountability Act will help protect American investors and their retirement savings from foreign companies, which are trading on the US stock markets, over-stocking. The House of Representatives passed the bill on Wednesday, the lower house of the US parliament.
Earlier the Upper House Senate passed it on 20 May. The bill will now be sent to President Donald Trump for signature. The bill prohibits such companies from listing on the US stock market, failing to comply with the Auditing Rules of the Public Company Accounting Monitoring Board (PCAOB) for three consecutive years.
Under the new rules, public companies will have to state whether they are owned or controlled by a foreign government, including the Communist Party of China, and will also ensure that foreign companies doing business in the US The same accounting rules apply to US companies.
