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Senate Passes Bill to Delist Chinese Companies from Exchanges

42 points by yumraj 6y ago

colejohnson66 6y ago
This doesn’t affect just Chinese companies; it applies to any company controlled by a foreign government. So the title isn’t fully accurate. The bill is very short, but here’s the relevant section (§2B): > (B) require each covered issuer identified under subparagraph (A) to, in accordance with the rules issued by the Commission under paragraph (4), submit to the Commission documentation that establishes that the covered issuer is not owned or controlled by a governmental entity in the foreign jurisdiction described in subparagraph (A)(i). Maybe it’s just me, but this is very vague. What about US based subsidiaries? I do also find it peculiar how it explicitly mentions “foreign jurisdiction”; which means companies doing the business of the NSA are exempt. For those wanting to read the bill, it’s S.945: https://www.congress.gov/bill/116th-congress/senate-bill/945/text https://www.congress.gov/bill/116th-congress/senate-bill/945...
- droopyEyelids 6y ago
  It sounds like it's trying to address the points made in "The China Hustle" [1] where investors aren't able to assess Chinese companies listed on US markets. "If a company can’t show that it is not under such control OR the Public Company Accounting Oversight Board isn’t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company’s securities would be banned from the exchanges." [1] https://www.youtube.com/watch?v=h_wi8Ti9vUY https://www.youtube.com/watch?v=h_wi8Ti9vUY
dpc_pw 6y ago
I have some tiny stake in some Chinese railroads listed on NY exchange. Not only it got decimated due to COVID, but now I will be forced to sell because of this? Bummer. :D
- Fjolsvith 6y ago
  Not for Chinese investors buying it back.
RileyJames 6y ago
If a company is dual listed on us and Chinese exchange, can you trade / transfer your shares from one exchange to the other? I imagine it’s difficult, but possible. Does anyone have any experience doing so?
zaro 6y ago
War... What is it good for?
- TheLastMan 6y ago
  Absolutely nuthin!!
- cfu0 6y ago
  The economy.
- snogaraleal 6y ago
  Protecting the freedom that you enjoy.

42 points by yumraj 6y ago

This doesn’t affect just Chinese companies; it applies to any company controlled by a foreign government. So the title isn’t fully accurate. The bill is very short, but here’s the relevant section (§2B): > (B) require each covered issuer identified under subparagraph (A) to, in accordance with the rules issued by the Commission under paragraph (4), submit to the Commission documentation that establishes that the covered issuer is not owned or controlled by a governmental entity in the foreign jurisdiction described in subparagraph (A)(i). Maybe it’s just me, but this is very vague. What about US based subsidiaries? I do also find it peculiar how it explicitly mentions “foreign jurisdiction”; which means companies doing the business of the NSA are exempt. For those wanting to read the bill, it’s S.945: https://www.congress.gov/bill/116th-congress/senate-bill/945/text https://www.congress.gov/bill/116th-congress/senate-bill/945...

droopyEyelids 6y ago
It sounds like it's trying to address the points made in "The China Hustle" [1] where investors aren't able to assess Chinese companies listed on US markets. "If a company can’t show that it is not under such control OR the Public Company Accounting Oversight Board isn’t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company’s securities would be banned from the exchanges." [1] https://www.youtube.com/watch?v=h_wi8Ti9vUY https://www.youtube.com/watch?v=h_wi8Ti9vUY

dpc_pw 6y ago

I have some tiny stake in some Chinese railroads listed on NY exchange. Not only it got decimated due to COVID, but now I will be forced to sell because of this? Bummer. :D

Fjolsvith 6y ago
Not for Chinese investors buying it back.

RileyJames 6y ago

If a company is dual listed on us and Chinese exchange, can you trade / transfer your shares from one exchange to the other? I imagine it’s difficult, but possible. Does anyone have any experience doing so?

zaro 6y ago

War... What is it good for?

TheLastMan 6y ago
Absolutely nuthin!!
cfu0 6y ago
The economy.
snogaraleal 6y ago
Protecting the freedom that you enjoy.