The US House of Representatives is expected to pass legislation this week that could prevent some Chinese companies from listing their shares on US exchanges unless they adhere to US auditing standards, congressional aides said on Tuesday, reported Reuters.
The House is scheduled to vote on Wednesday evening on “The Holding Foreign Companies Accountable Act,” which bars securities of foreign companies from being listed on any US exchange if it has failed to comply with the US Public Accounting Oversight Board’s audits for three years in a row.
The bill, sponsored by Republican Senator John Kennedy and Democratic Senator Chris Van Hollen, passed the Senate in May by unanimous consent, so House passage would send it to the White House for US President Donald Trump to veto or sign into law, said Reuters.
The bill would give Chinese companies like Alibaba, China Telecom Corp and China Mobile three years to comply with US rules before being removed from US markets.
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