The United States is threatening to pull Chinese companies out of Wall Street

New York Stock Exchange stock values ​​to be displayed on Wall Street on February 24, 2022 – AFP

The U.S. Securities and Exchange Commission (SEC) has ordered five Chinese companies to comply with the agency’s audit requirements, under the penalty of exclusion from Wall Street.

The initial group of companies mentioned in the list released by the SEC on Thursday (10) may soon be expanded to all Chinese companies listed in New York. At present, none of them comply with US regulations in this regard.

At least 248 companies will be affected, with a market capitalization of about $ 2.1 trillion, according to the Provisional Group.

In recent months, Chinese officials have revealed bookings about listing Chinese-based companies on US stock exchanges.

In 2020, Congress passed a law specifically targeting Chinese companies, under which the Board of Public Accounts Supervision Board (PCAOB) is required to review the audits of foreign companies doing business in the US markets.

Mainland Chinese and Hong Kong companies do not submit their financial statements to US-approved auditors.

The new law risks exempting them from 2024.

The five companies named on Thursday are biotech companies BeiGene, Zai Lab and Hutchmed, semiconductor industry contractor ACM Research and Restaurant Group Yum China.

The latter controls KFC, Taco Bell and Pizza Hut and other restaurants in China, more than any other company in terms of revenue and capital.

Born out of the US-based Yum Brands’ Chinese operations in 2016, Yum China has a market capitalization of $ 18.8 billion.

In early December, under pressure from Chinese officials, “Uber of China” Didi Chuxing left the US market, six months after its peak publication on the New York Stock Exchange.

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