Chinese Companies That Fail To Meet Accounting Standards Will Be Delisted From US Stock Exchanges, Mnuchin Says – By Wesley Dockery (IB Times) / Aug 10 2020
Chinese companies that fail to meet certain accounting standards will be delisted from U.S. stock exchanges by the end of 2021, Treasury Secretary Steven Mnuchin announced Monday.
“As of the end of next year … they all have to comply with the same exact accounting, or they will be delisted on the exchanges,” Mnuchin said during a White House briefing.
The decision follows multiple accounting scandals involving Chinese companies listed on U.S. indexes. Beijing-based Luckin Coffee revealed in April that it inflated 2019 sales revenue by up to $310 million, causing the company to be delisted from the NASDAQ. After-school learning company TAL Education Group, along with video platform iQiyi, are two other U.S.-listed companies that have faced accounting scandals in recent months.
The move by the Trump administration is the latest attempt to put pressure on China. Trump criticized Beijing on Monday, saying China has not kept up with its import commitments under the “Phase One” trade agreement signed in January.
“We did a Phase 1 deal and it was a wonderful deal, and all of a sudden it means very little in the overall import of things,” Trump said during a press briefing.
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