The USS Increases Its Pressure On Chinese Companies To Disclose Information

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Under a regulation passed by securities regulators, Chinese firms will have to reveal more information about audits and whether they are controlled by a government or face exclusion from U.S. stock markets.

The Securities and Exchange Commission’s approval of the rule on Thursday escalates a long-running dispute between Washington and Beijing over how much information firms with publicly listed shares in the United States must divulge.

According to the SEC, companies that engage an auditor in a foreign jurisdiction must prove that they are not “owned or controlled by a government body” in that country. In addition, companies will be expected to include extra information in their annual reports.

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Some corporations may face “trading limitations,” according to the SEC.

Under a regulation passed by securities regulators, Chinese firms will have to reveal more information about audits and whether they are controlled by a government or face exclusion from U.S. stock markets.

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The Securities and Exchange Commission’s approval of the rule on Thursday escalates a long-running dispute between Washington and Beijing over how much information firms with publicly listed shares in the United States must divulge.

According to the SEC, companies that engage an auditor in a foreign jurisdiction must prove that they are not “owned or controlled by a government body” in that country. In addition, companies will be expected to include extra information in their annual reports.

Some corporations may face “trading limitations,” according to the SEC.

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