U.S. Treasury Secretary Steven Mnuchin said Monday that Chinese or other companies that do not comply with U.S. accounting standards will be delisted by the U.S. stock exchange by the end of 2021,media reported. Officials such as Mr. Snuchin recommended last week that the Securities and Exchange Commission take the action to ensure that Chinese companies are subject to the same standards as U.S. companies.
Recommendations include ensuring that the Public Corporate Accounting Oversight Board (PCAOB), the U.S. audit watchdog, has access to audit documents from these companies by January 1, 2022.
These companies can also provide “co-audits”, for example, by the Us parent company, which is responsible for providing audit services to Chinese companies.
Snuchin said at a White House press briefing that the SEC is expected to accept the recommendation, until the end of next year… They all have to comply with exactly the same accounting standards, or they will be delisted by the exchange.