WASHINGTON — The Coalition for a Prosperous America (CPA) today released a statement after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler called for greater disclosure into Chinese companies listing on U.S. exchanges. On July 22, 2021, CPA urged Gensler to implement the Holding Foreign Companies Accountable Act (P.L 116-222) without delay after reports that the Commission has not acted sufficiently to implement the law.
The law ensures that Chinese and other foreign companies traded on U.S. exchanges are subject to the same independent audit requirements that apply to American companies. Importantly, the law protects U.S. investors by prohibiting securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with the Public Company Accounting and Oversight Board’s (PCAOB) audits for three consecutive years.
“While we welcome Chairman Gensler’s statement, it is long overdue for the SEC to address the Chinese Communist Party’s fraud on U.S. capital markets,” said Michael Stumo, CEO of CPA. “The SEC should take immediate action to force U.S. exchanges to delist all non-compliant Chinese companies and put an end to Wall Street getting rich of Chinese IPOs that pose an asymmetric and material risk to American investors. Speaker Pelosi should schedule a vote for the Accelerating Holding Foreign Companies Accountable Act, which would require foreign companies to comply with PCAOB audits within two consecutive years instead of three, without delay.”
Earlier this month, CPA Communications Director Nick Iacovella wrote in Fox Business that “No Chinese company involved in the CCP’s genocide, human rights abuses and use of forced labor should be able to access our markets and raise money from American investors.” In May, CPA CEO Michael Stumo wrote in The Washington Times that the “Biden administration should move swiftly to ensure that China’s ruling Communist Party can no longer fund its predatory agenda with Wall Street’s help.”