Washington, December 3: In a major development, the Chinese firms could lose access to the US stock market. According to an AFP news report, the House of Representatives on Wednesday passed a bill that could close US stock and money markets to Chinese firms.
The "Holding Foreign Companies Accountable Act" bill goes to President Donald Trump for final approval, since it was already passed by the Senate.
The measure would mandate that foreign companies listed on US stock exchanges comply with accounting requirements of the US Securities and Exchange Commission. There are several companies that conform to the standard, but Chinese firms do not. TikTok Given 7-Day Extension For Sale of Its US Business by Donald Trump Administration.
In addition to this, the Chinese groups listed on the US Stock Exchange will have to disclose whether one or more of their board members are members of the Chinese Communist Party. One of the heavyweights listed is Alibaba, which in 2014 had the biggest all-time IPO on the New York Stock Exchange, raising $25 billion.
(The above story first appeared on LatestLY on Dec 03, 2020 07:34 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).