Chinese companies will have to publish more information in the USA

Chinese companies that have shares on stock exchanges in the United States will have to publish more information than before, especially about their audit. This was stated by the US Securities and Exchange Commission (SEC), which issued a summary of guidelines this week. It will also be necessary to state what ties the company has to the Chinese government. If Chinese companies refuse to comply with stricter rules, they will have to leave the US stock markets. The latest regulation of the US Stock Exchange Commission responds to the long-running disputes between Beijing and Washington over how much information foreign companies traded in the US should disclose. It will now be the case that firms that use the services of auditors in foreign jurisdictions will have to confirm that they are "not owned or controlled by any government agency." Companies will also have to publish some additional information in their annual reports. The Exchange Commission warned that if companies do not wish to comply with the instructions or do not follow them as required, the exchange operators may apply various restrictions to trading in the company's shares. Other countries are responding to Washington when US government agencies call for more effective oversight of financial reporting, the AP reports. China, on the other hand, refuses to allow the US Public Accountants Office (PCAOB) to review the work of Chinese auditors. Hundreds of Chinese companies have secured tens of billions of dollars in the US financial markets. But their status is the cause of growing disputes with Beijing. The latest US stock exchange regulation generally applies to audit firms for which the PCAOB does not have the opportunity to check how reliably they perform their work. These are mainly companies from China. In another regulation, the US government also banned US citizens from investing in stocks, bonds and other securities issued by Chinese companies that it believes are affiliated with the Chinese Communist Party. Americans fear that Beijing is trying to gain access to the latest technology through such companies, which it would then use for military purposes.