For years American based companies have complained about lower standards for audit transparency being applied to Chinese and other foreign based companies whose stocks are listed on U.S. exchanges.
In 2020 Luckin Coffee, sort of a “Chinese Starbucks” was found to have committed fraud in reporting its financials and what was once a high flying stock was found to have overstated sales by more than $300 Million. Their NASDAQ listed stock share price plummeted by more than 80% and trading has since been halted.
This rule would allow for the SEC to delist a company for noncompliance after three years of PCAOB audit requests being denied. That is a long time, but is a step in the right direction to level the playing field for U.S. companies. For the full article click here:
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