The fate of 200+ Chinese companies listed on American exchanges still hangs in the balance, but recent reports suggest that a final decision on this topic could be made in December 2022.
Roughly 250 Chinese companies listed on U.S. exchanges could be involuntarily delisted by the year 2024 as a result of the Holding Foreign Companies Accountable Act (HFCAA), which was passed by Congress in 2020.
In the financial markets, the term “delisting” refers to the removal of a stock’s shares from an exchange. But a delisting event doesn’t necessarily mean that a company’s shares stop trading altogether, because many delisted stocks continue to trade over-the-counter (OTC).
As part of the Holding Foreign Companies Accountable Act (HFCAA), the U.S. government recently closed an accounting/auditing loophole that could result in the delisting of most Chinese-listed ADRs from American exchanges by the year 2024—or even as soon as 2023, if current legislation is enacted. Recent steps taken by the U.S. government assure that a … Continued