Chinese tech stocks fall sharply as US SEC rolls out delisting law
Move adds to the unprecedented crackdown in China on domestic tech firms
 "Chinese tech stocks fall sharply as US SEC rolls out delisting law")
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China’s foreign ministry said the SEC decision would hurt the reputation of U.S. capital markets.
Shares in dual-listed Chinese companies fell sharply on Thursday in Asia after the US securities regulator adopted measures that would kick foreign companies off American stock exchanges if they do not comply with US auditing standards.
The move by the Securities and Exchange Commission (SEC) adds to the unprecedented regulatory crackdown in China on domestic technology companies, citing concerns that they have built market power that stifles competition.
The Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, is aimed at removing Chinese companies from US exchanges if they fail to comply with American auditing standards for three years in a row.
The rules also require firms prove to the SEC they are not owned or controlled by an entity of a foreign government and to name any board members who are Chinese Communist Party officials, the SEC said in a statement Wednesday.
China’s foreign ministry said the SEC decision would hurt the reputation of U.S. capital markets.
“It is clearly discriminatory against Chinese companies, it is wanton political suppression of Chinese companies listed in the US,” spokeswoman Hua Chunying said Thursday.
“It deprives the U.S. public and investors in sharing in Chinese businesses' growth. It will harm the US’ position as a capital market.”
“We urge the US to stop politicising security regulation, stop discriminating practices against Chinese companies, and provide a fair just and non discriminatory business environment for all businesses listed in the US.”
The China Securities and Regulatory Commission (CSRC) did not immediately respond to a Reuters request for comment.
In Hong Kong, the news prompted a sharp sell-off of the US-listed Chinese companies which have also listed on the city’s exchange in the past two years.
The move by the Securities and Exchange Commission (SEC) adds to the unprecedented regulatory crackdown in China on domestic technology companies, citing concerns that they have built market power that stifles competition.
The Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, is aimed at removing Chinese companies from US exchanges if they fail to comply with American auditing standards for three years in a row.
The rules also require firms prove to the SEC they are not owned or controlled by an entity of a foreign government and to name any board members who are Chinese Communist Party officials, the SEC said in a statement Wednesday.
China’s foreign ministry said the SEC decision would hurt the reputation of U.S. capital markets.
“It is clearly discriminatory against Chinese companies, it is wanton political suppression of Chinese companies listed in the US,” spokeswoman Hua Chunying said Thursday.
“It deprives the U.S. public and investors in sharing in Chinese businesses' growth. It will harm the US’ position as a capital market.”
“We urge the US to stop politicising security regulation, stop discriminating practices against Chinese companies, and provide a fair just and non discriminatory business environment for all businesses listed in the US.”
The China Securities and Regulatory Commission (CSRC) did not immediately respond to a Reuters request for comment.
In Hong Kong, the news prompted a sharp sell-off of the US-listed Chinese companies which have also listed on the city’s exchange in the past two years.
Topics : Chinese tech firms Chinese stock market US SEC