According to Fox News correspondent Charles Gasparino, the Trump administration is preparing to take steps to the possibility of abolishing public Chinese companies from the US stock exchange.
Sources say new SEC (Securities and Exchange Commission) chairman Paul Atkins, who is expected to take office, will make the issue a priority on his agenda after he officially takes office.
The potential for listing is being valued in the shadow of an ongoing trade war with China, but the Republican Congress wing has stated that there is an increasing desire to remove Chinese companies from the US market.
Under US law, Chinese companies can be repealed from the stock exchange if they make their financial records public for inspection and do not disclose their relationship with the Chinese government in a transparent way.
One of the issues that have attracted the attention of lawmakers is what is called “golden share,” and the Chinese government directly manages companies that have been traded publicly. These stocks have been criticized for increasing the Chinese state’s influence in managing companies.
*This is not investment advice.
