SEC’s Gensler says it’s unclear if US and China will reach a deal to avoid stock delistings
- Chinese companies face a 2024 deadline of being kicked off American stock exchanges for lack of access to audit work papers
- SEC has started adding companies on a provisional list amid measures in Congress to speed up compliance
Gensler said on Tuesday that it is ultimately Beijing’s decision whether to grant access to American audit inspectors as required by US law, adding that talks between the two sides had been “constructive.”
“I just really don’t know right now” over the prospects of reaching a deal, he said in an interview. “It’s going to be choices made by the authorities there.”
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US demands for TikTok may escalate decoupling and hurt businesses, says China expert
The US and China have been at odds for two decades over the legal requirement, which is meant to protect investors from accounting frauds and other financial malfeasance. The 2024 deadline stems from a 2020 law called the Holding Foreign Companies Accountable Act that was popular with both Democrats and Republicans.
