Mainland China and Hong Kong companies do not submit their financial statements to auditors certified by US authorities.
Five major Chinese companies listed in the United States announced Friday that they are delisting from the New York Stock Exchange, at a time when Beijing companies are being targeted by US regulators.
Mainland China and Hong Kong companies do not submit their financial statements to auditors certified by US authorities.
A law passed in 2020 by the US Congress obliges every company listed in the United States to proceed with the validation of its accounts by an office certified by the independent accounting organization PCAOB.
Businesses that fail to comply with the legislation risk being delisted from 2024.
In this context, the major oil companies Sinopec and PetroChina stated today in separate announcements that they are “voluntarily withdrawing” from the New York Stock Exchange, in which they are listed.
The big insurance company China Life Insurance, the Chinese aluminum giant Chalco, as well as a subsidiary thereof Sinopec based in Shanghai announced similar milestones.
All justify this decision by citing the costs required to remain listed in the United States, as well as the burden represented by compliance with audit obligations.
The five groups are on a list of companies that have been warned to comply with accounting obligations set by the US Securities and Exchange Commission (SEC) and were therefore threatened with delisting from the US Stock Exchange.
RES-EMP
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