US Senate passes bill to delist Chinese firms from exchanges

WASHINGTON: The US Senate passed legislation on Wednesday that could prevent some Chinese companies from listing their shares on US exchanges unless they follow standards for US audits and regulations.

The measure, sponsored by Republican Senator John Kennedy and Democratic Senator Chris Van Hollen, passed by unanimous consent. However, it must pass the House of Representatives and be signed by President Donald Trump to become law.

“The Holding Foreign Companies Accountable Act” bars securities of any company from being listed on any US securities exchange if it has failed to comply with the US Public Company Accounting Oversight Board’s audits for three years in a row.

The measure also would require public companies disclose whether they are owned or controlled by a foreign government.