CHINA-US: U.S. SEC APPROVES FRAMEWORK FOR ENFORCEMENT OF 'HOLDING FOREIGN COMPANIES ACCOUNTABLE ACT'
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In a step towards enforcement of the Holding Foreign Companies Accountable Act, which
became law at the end of last year and stipulates that any foreign companies listed on US
exchanges face delisting if they fail to turn over audit results for three straight years, the U.S.
Securities and Exchange Commission approved a framework to determine which US-listed
Chinese companies fail to fully allow auditing inspection and, therefore, will be delisted from
American capital markets. It will allow the Public Company Accounting Oversight Board’s
(PCAOB), a non-profit entity that deals with accounting issues of public companies, to
determine whether a delisting process needs to be triggered.
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