By Anadolu Agency
Gary Gensler says Chinese firms could be prohibited trading from markets if they fail to comply with regulations
The US’ Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that Chinese firms might be kicked out of American stock exchanges in 2024 unless they comply with regulations.
The head of the US market regulator said around 270 China-based companies need to open their books and financial records, in an op-ed he wrote for the Wall Street Journal late Monday. He said the Chinese firms could be prohibited trading from the US stock markets by early 2024 if they fail to comply with the regulations.
“The SEC has taken all the required steps to implement this law, and the oversight board is on track to finalize its relevant rulemaking before the end of the year … The three-year clock began ticking in 2021,” Gensler wrote.
SEC warned in July it would require Chinese companies to disclose additional information if they want to be listed on US stock exchanges in initial public offerings (IPOs).
Around 270 Chinese firms listed on US exchanges have a total market value of over $2 trillion, eight of which are Chinese state-owned companies, according to the US-China Economic and Security Review Commission.