Less than a day after the US Securities and Exchange commission had stiffened rules for the US stock exchange-listed Chinese companies and the US President Donald Trump had signed off a memorandum aimed at calling for recommendations to be issue within 60 days to protect the US investors from fraudulent US-listed Chinese companies, the US Secretary of State, Mike Pompeo had warned the American investors over mischievous accounting practices of US-listed China-based companies and had touted the Nasdaq’s recent move to tighten listing rules for Chinese companies a global role model adding that the Nasdaq move should be implemented all over the world.
In point of fact, latest remarks of US Secretary of State, Pompeo came forth at a critical time when a latest leg of Beijing-Washington rift has been widening over the Hong Kong issue, while Pompeo’s comments appeared to have mirrored the Trump Administration’s desire to make it harder for the Chinse companies to raise funds outside the China.
Nasdaq stiffens listing rules for Chinese companies; adds to growing list of flashpoints between the nations
Meanwhile, addressing to the US SEC decision to stiffen the listing rules for the Chinese companies in order to curb out their swarming wave of IPOs in the US markets, Pompeo said, “American investors should not be subjected to hidden and undue risks associated with companies that do not abide by the same rules as U.S.
firms. Nasdaq’s action should serve as a model for other exchanges in the United States, and around the world. I applaud Nasdaq for requiring auditing firms to ensure all listed companies comply with international reporting and inspection standards.
” In tandem, while being asked over the blazing issue which has every potentiality to ratchet up heats at the Sino-US trade frontiers, Nasdaq Chief Executive Adena Friedman was quoted saying that the issue was a matter for the US Securities and Exchange Commission.