SEC Pushes Plan That Could Delist Chinese Companies

The SEC is working on rules that could lead to the delisting of Chinese companies from US exchanges if they don't comply with US audit regulations. This is part of a long-standing dispute between the US and China over audit transparency. The issue is exacerbated by deteriorating US-China relations and recent accounting scandals. Chinese companies are preparing by setting up secondary listings in Hong Kong. The situation is complex, with potential impacts on US exchanges and ongoing lobbying efforts.

What is the main goal of the SEC's proposed rules regarding Chinese companies?

• To reduce the number of US companies investing in China

• To promote Chinese companies' growth in the US market

• To ensure Chinese companies comply with US audit regulations

• To increase the number of Chinese companies listed in the US

What has been a major obstacle in resolving the US-China audit dispute?

• China's refusal to allow US inspectors to review audits

• The support from both US and Chinese governments

• The lack of interest from US companies

• The absence of any proposed regulations

How have some Chinese companies responded to the potential delisting from US exchanges?

• By withdrawing from the US market entirely

• By increasing their investments in the US

• By setting up secondary listings in Hong Kong

• By complying with all US regulations

What is one potential consequence for US stock exchanges if the delisting proposal is enforced?

• A decrease in the number of listed companies

• A surge in foreign investments

• An increase in the number of listed companies

• A rise in stock prices

What is the nature of the issue regarding the delisting proposal in Congress?

• It is solely supported by the Democratic party

• It is a bipartisan issue

• It is a partisan issue

• It is not considered important