Last week, U.S. Sen. Marco Rubio, R-Fla., introduced a bill “to prohibit initial public offerings (IPOs) on U.S. exchanges for Chinese companies that are out of compliance with U.S. regulators.”
Rubio brought out the “No IPOs for Unaccountable Actors Act” with U.S. Sen. Bob Casey, D-Penn., as the only co-sponsor.
“This legislation would direct the Securities and Exchange Commission (SEC) to prohibit any company headquartered in a jurisdiction in which the Public Company Accounting Oversight Board (PCAOB) lacks full auditing authority, or that retains an auditor PCAOB cannot inspect, from registering a security and making an IPO on a U.S. stock exchange. This would prevent Chinese companies from issuing IPOs or listing on American exchanges through SPACs,” Rubio’s office noted.
“As unbelievable as it may sound, companies from across the world who wish to list on American exchanges must comply with audit inspection standards — except for those from China,” Rubio said. “There is no reason why China should be able to bypass our securities laws yet reap the benefits of listing on our exchanges. It’s time for China to play by the rules and cease exploiting the openness of U.S. capital markets.”
The bill was sent to the U.S. Senate Banking, Housing, and Urban Affairs Committee. So far, there is no companion measure in the U.S. House.
Reach Kevin Derby at [email protected].
