Momentum Builds in Washington to Delist Chinese Firms From US Exchanges

Key Takeaways

• The Securities and Exchange Commission is under increasing pressure to restrict Chinese companies’ access to US stock markets amid concerns that American capital is being exploited to modernize China’s military.
• New SEC regulations may challenge many Chinese firms’ foreign private issuer status and subject them to stricter ownership and disclosure requirements.
• Delisting threats will continue to drive mainland Chinese companies’ global IPOs to Hong Kong, potentially limiting opportunities for US investors.