“Welcome, but Verify”: The Future of Chinese Companies Listed on the U.S. Stock Exchanges

Abstract

The U.S.-listed Chinese companies have been the focus of Wall Street, Washington, and beyond. There have been plenty of new developments in this sector. Firstly, Chinese companies have launched many successful new IPOs on the U.S. stock exchanges. Secondly, accounting fraud and other irregularities in this sector have created major headlines. Regulators in the United States have forced several Chinese companies to delist. United States. Congressmen and Senators have called for a blanket ban on these companies. Through this chapter, we intend to review the historical development and current situation of Chinese companies listed in the United States, and outline some realistic approaches for the next decade. It needs to be stated clearly that there are tremendous benefits created by the Chinese companies that come to trade on the U.S. stock exchanges. A more collaborative and reciprocal relationship would be an achievable goal for the White House’s new administration. Chinese companies should continue to be welcomed to the American stock exchanges, just like all other foreign companies. However, American accounting standards need to be applied rigorously. Management and controlling shareholders need to be held accountable for illicit behavior.

The views and opinions expressed in this chapter are those of the author and do not reflect the official policy or position of any organizations with which the author is affiliated