Chinese companies that list on United States stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections, the Securities and Exchange Commission (SEC) said on Thursday.
The rule advances a process that could lead to more than 200 companies being kicked off US exchanges and could make some Chinese companies less attractive to investors.
The new rules implement a law passed by Congress in December 2020 that aims to ensure foreign companies listed in the US, in particular Chinese companies, comply with US rules.
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