29 May Avantisteam Writes Citic Capital Chairman: U.S. Securities Bill Has Limited Im…
What’s new: The head of a Chinese state-owned investment company said the new hotly debated U.S. securities bill may not have a significant impact on Chinese companies listed on U.S. markets, as they are still welcomed by many investors and most already abide by the rules.
Most U.S.-listed Chinese companies already meet the requirements of the bill, Zhang Yichen, chairman of Citic Capital Holdings Ltd., an investment arm of Citic Group Corp., told Caixin this week. Zhang said few U.S.-listed Chinese companies are state-controlled, and most of them have hired the “Big Four” accounting firms as auditors. He added that many U.S. investors still welcome “new economy” companies, a recognition that many Chinese companies listed abroad are tech-based, and some investors have made large profits from investing in these companies.
What’s the background: On May 20, the U.S. Senate approved legislation to tighten oversight of U.S.-listed Chinese companies. The companies must certify that they are not under control of a foreign government, and will be delisted if the U.S. side is “unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board,” according to the legislation.
China’s top securities regulator said later that it opposes the U.S.’ practice of politicizing securities regulation, claiming that some provisions of the bill are directly pointed at China rather than based on professional considerations.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Register to read this article for free.