Congress has ordered the Securities and Exchange Commission to enforce the delisting of Chinese stocks of some 248 companies listed on US exchanges within three years if they fail to fall into line with US audit norms. The companies have a combined market capitalisation of $2.1 trillion – equal to about 3.7% of US market capitalisation.
There’s no sign China will bend. On the contrary, it’s issued new regulations since July that prohibit Chinese companies from complying with US audit requests.
Caught in the middle are American and international investors in Chinese companies.
