US regulator adopts regulations that would lead Chinese firms to leave Wall Street

Market regulatory authorities in United States (SEC) They adopted an amendment to their regulations that allows them to delist firms that do not audit their accounts with authorized auditors, something that happens with all Chinese firms on Wall Street.

These amendments derive from a law voted in December 2020 in Congress, the HFCAA, which requires a publicly traded company in the United States to certify its accounts by a firm authorized by the independent accounting organization PCAOB.

Companies that are publicly traded or that issue debt in the United States have until the end of 2022 to regulate themselves, the SEC said in a statement.

The mandate requires, among other things, that companies disclose whether are “owned or controlled” by a governmentadded the body.

Chinese and Hong Kong firms are notorious for failing to submit their financial statements to authorized auditors.

This new text therefore poses the threat of going public and was disclosed when the Chinese authorities put reservations in recent months for companies based in China to be listed in the United States.

According to the specialized agency Bloomberg, the Chinese authorities asked the “Chinese Uber”, Didi, to withdraw from Wall Street.

On Thursday, Alibaba’s stock hit its lowest level in four years on rumors that the Chinese e-commerce giant would drop US indices.