The U.S. House of Representatives passed legislation on Wednesday that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they adhere to U.S. auditing standards.
The measure passed by unanimous voice vote, after passing the Senate earlier this year, sending it to the White House where President Donald Trump is expected to sign it into law.
“The Holding Foreign Companies Accountable Act” bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board’s audits for three years in a row.
While it applies to companies from any country, the legislation is intended to address companies such as Alibaba, tech firm Pinduoduo Inc. and oil giant PetroChina Co Ltd..
(Reporting by Patricia Zengerle; Editing by Chris Reese and Alistair Bell)