
One Good Reason to Delist Chinese Companies - lawrenceyan
https://www.bloomberg.com/opinion/articles/2019-10-07/u-s-listed-china-companies-should-follow-rules-or-exit
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corodra
Anyone able to chime in on this with professional experience?

I always assumed that a foreign company looking to be listed public in the USA
had to play by our rules at least within USA soil. Including accounting and
oversight. After a little bit of reading (I'm not really into investing/SEC
rules), I'm finding out that no foreign country really has to. Almost honor
system like standards. And it seems to stem from '07 when the EU pushed for
that. Am I really off base? Confusing facts? I've only been researching for 15
minutes and need to do a lot of backlog reading to get a handle on it since
it's not my field of experience.

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gamblor956
They are generally required to follow US GAAP or International IFRS rules as a
condition of being listed on a US exchange and undergo regular audits, but
neither of these is an actual legal requirement, and the exchanges are not
very good at enforcing their rules now that they are for-profit entities.

The SEC rules really just say that you can't defraud your investors.

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corodra
So it would be up to the Fed to force and enforce regulations that the NYSE
has to abide by. I doubt Interpol or the UN gives two shits. Especially the UN
since they're having money troubles right now. But at least, freezing trading
on a foreign company in the USA is at least something. Guessing there's going
to be a bunch of loopholes if you have enough money and resources to just buy
that stock anyways. Yea, a bit of a shitty problem I take it.

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gamblor956
I don't understand your comment at all.

All the NYSE has to do is enforce it's _own existing rules_ and nearly every
Chinese company on its index would be kicked off.

The Feds, Interpol, UN etc. have nothing to do with stock listings.

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toomuchtodo
> All the NYSE has to do is enforce it's own existing rules and nearly every
> Chinese company on its index would be kicked off.

Perhaps all it takes is a complaint to NYSER [1] and FINRA, CCd to the SEC to
find out _why_ the NYSE isn't enforcing it's own rules on their exchange in
regards to these listed Chinese companies. I submitted an inquiry to request
the mailing address for complaint submission to NYSER, so a certified mail
paper trail can be started. Best source of data for a list of Chinese symbols
that would be non-compliant?

[1] [https://www.nyse.com/regulation](https://www.nyse.com/regulation) |
[https://www.nyse.com/regulation/complaints-and-
inquiries](https://www.nyse.com/regulation/complaints-and-inquiries)

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notaround1111
> arguing that disclosing the records would violate laws that prohibit the
> transfer of data potentially containing state secrets to foreign entities.

If there is fraud its likely state sponsored fraud, I have a hard time
imagining another reason to explain this type of position; open to hearing
other ideas. Honestly it's quite brilliant, instead of selling bonds just list
another company in the west and skim money off the capital raised there.

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brodouevencode
It only makes sense that Chinese companies should have to play by our rules.
In large part US companies have been happy to tap into that Chinese behemoth
<insert Google-China relationship here>, but I can't help but to wonder if the
CCP will double down on giving favorability to their native companies. We saw
a little bit of this with the (albeit highly unpopular) tariff back-and-
forths. However China cannot operate in a vacuum. Their economy is very highly
dependent on the US.

