US House of Representatives to vote on bill that could threaten future of Chinese firms on US stock exchange
- Legislation will requires companies listed on the US stock exchange to open their books and prove they are not under government control
- The legislation has already passed the Senate and the accelerated vote suggests it has bipartisan support
The US House of Representatives will vote on bipartisan legislation that would impose restrictions on Chinese companies listed on US exchanges and requires certification that they’re not under control of a foreign government.
The bill’s sponsors say the aim is to ensure foreign companies traded in America are subject to the same independent audit requirements that apply to US firms.
In doing so, the measure threatens to boot Chinese companies, including behemoths like Alibaba Group Holding, which owns the South China Morning Post, and Baidu out of American stock markets.
The Holding Foreign Companies Accountable Act will be considered on Wednesday under a streamlined process that limits debate on the House floor, allows no amendments, and requires approval by two-thirds of members present and voting to pass.
The Republican-led Senate passed the measure in May; scheduling a House vote now, under an accelerated process typically used for non-controversial matters, signals conditional bipartisan support.
“The current policy that allows Chinese firms to flout the rules that American companies follow is toxic,” Senator John Kennedy, a Louisiana Republican, told Bloomberg News on Saturday. Kennedy introduced the bill with Senator Chris Van Hollen, a Democrat from Maryland.