The SEC is moving forward with the implementation of the Foreign Company Accountability Act (FCA). According to its official website, the SEC has adopted amendments to implement the relevant provisions of the Congressionally mandated Foreign Company Accountability Act (HFCA Act).
Chinese stocks hit hard, ……
SEC’s big move
Top Chinese stocks fall, plunging up to 27%
The SEC is moving forward with the implementation of the Foreign Company Accountability Act (FCA). According to its official website, the SEC has passed amendments to implement the relevant provisions of the Congressionally mandated Foreign Company Accountability Act (HFCA Act).
As previously reported by the media, the U.S. House of Representatives passed the Foreign Company Accountability Act on December 2, 2020, which could prevent some Chinese companies from listing on U.S. exchanges.
The bill was passed by the U.S. Senate in May 2020. The bill would prohibit foreign companies from listing on any U.S. exchange if they fail to pass an audit by the U.S. Public Company Accounting Oversight Board (PCAOB) for three consecutive years. Many analysts say the bill could prevent some Chinese companies from listing on U.S. exchanges unless they comply with U.S. auditing standards.
President Trump signed the “Foreign Company Accountability Act” on Dec. 18 last year, local Time.
On Wednesday, popular Chinese stocks fell in general. Among them, Tencent Music fell 27%, Vipshop fell 21%, and Aikiya fell nearly 20%.
Before the plunge, Tencent Music’s market value was about $53.3 billion, or about RMB 350 billion. In one day, its market value evaporated $14.4 billion, or about 94 billion yuan.
Xiaopeng car fell over 15%, Ideal car fell over 13%, and Azera car fell over 10%.
Misty Core Technology fell 11.5%, Beili Beili fell nearly 10%, Poundland fell more than 8%, and Funky Head fell more than 10%.
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