US adopts regulation that could drive Chinese companies to leave Wall Street

The regulatory authorities of the United States market (SEC) announced this Thursday (2) that they have adopted an amendment to their regulations that allows them to withdraw from the trading session companies that do not audit their accounts with authorized auditors, something that happens to all companies Chinese women on Wall Street.

These changes stem from a December 2020 law passed 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 comply with the new rules, the SEC said in a statement.

The mandate requires, among other things, that companies disclose whether they are “owned or controlled” by a government, the agency added.

Chinese and Hong Kong companies are notorious for not submitting their financial statements to authorized auditors.

This new text, therefore, represents a threat to these companies’ trading on the stock exchange and was released at a time when Chinese authorities imposed new requirements in recent months for companies based in China to be listed in the United States.

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

This Thursday, Alibaba shares hit their lowest level in four years, with rumors that the Chinese e-commerce giant would no longer be listed on the US stock exchange. The papers closed the session down 0.4%, to US$ 122 (R$ 687.33).