China and US May Solve De-Listing Problem

China regulators may be agreeable to a work-around that would prevent the de-listing of China companies from US stock exchanges, according to a Financial Times article. A new US law demands China-based companies with US listings must have their financial reports reviewed by a US auditor The problem is Article 177 of China's security law, which prohibits foreigners from examining the inner workings of China companies. However, the purpose of Article 177 is to prevent IP theft and protect national security. If Article 177 was defined more narrowly, information that pertains to China's concerns could be restricted, while allowing US auditors access to a company's financial details. More details....

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