Breaking: China decries implementation of discriminatory US stock exchange law
China has decried the implementation of a law in the United States that could delist Chinese companies from American stock exchanges.
The US Securities and Exchange Commission (SEC) began implementing a law called the Holding Foreign Companies Accountable Act that is aimed at removing Chinese companies from US exchanges if they run foul of certain American auditing rules for three years in a row.
The SEC said in a statement on Wednesday that the law required firms to prove that they are not owned or controlled by an entity of a foreign government.
The rule also requires Chinese firms to name any board members who are Chinese Communist Party officials.
China’s Foreign Ministry spokeswoman Hua Chunying said on Thursday that the US measure distorted market principles.
Beijing also urged Washington to stop “discriminatory” action against Chinese firms.
The law was approved by the administration of former US President Donald Trump in December last year.