ass = “text-big-title”> Securities battlefield under Sino-US game
The core of this bill ’s controversy lies in China ’s unwillingness to allow the US Listed Company Accounting Oversight Committee Routine audit of the audit records. John Kennedy pointed out that this represents a huge risk to US investors because in 2011 Almost 11% of securities class action lawsuits accuse Chinese companies of distorting facts in financial documents.
The doubts in the United States are not groundless. The issue of counterfeiting of the Chinese stock market is indeed a mystery. According to Fortune , April On the 2nd, Ruixing Coffee admitted that its COO Liu Jian and his subordinates participated in financial fraud and inflated transactions of 2.2 billion yuan; on April 7, a research report from Wolfpack Research accused iqiyi of inflated performance of 8-13 billion, resulting IQiyi’s stock price plunged by more than 12% at the beginning of the opening; from April 7 to April 14, online education companies were short-sold twice with whom they were short-sought. The company’s 2019 financial report was published, but the stock price still fell by more than 15%.
Although Chinese listed companies are confused about their financial issues, the introduction of the “Accountability Act for Foreign Companies” is inseparable from the escalation of tensions between China and the United States. The Sino-US trade war and the impact of the new crown epidemic have reduced Sino-US relations to a freezing point in recent days, while the United States ’distrust of Chinese technology companies has continued to spread to the stock exchange.
On April 23, the US Securities and Exchange Commission (SEC) Chairman