U.S. Listed Chinese Companies Have Two Years to Open Books: Gensler

The transcript discusses the differences in accounting oversight between American companies and those from China and Hong Kong, highlighting the Sarbanes-Oxley Act's role in ensuring financial transparency. It explains that while most global jurisdictions comply with these standards, China and Hong Kong do not. Consequently, Congress has set a deadline for these companies to comply or face trading suspensions in U.S. markets.

What is the primary concern regarding companies from China and Hong Kong traded on U.S. stock exchanges?

• They are not subject to the same accounting oversight as American companies.

• They have higher trading fees.

• They are required to follow stricter regulations.

• They have more frequent trading halts.

What was the main purpose of the Sarbanes-Oxley Act?

• To reduce taxes for large corporations.

• To ensure financial transparency and accountability.

• To promote international trade.

• To increase stock market volatility.

Which two jurisdictions have not allowed their auditors to be inspected under the Sarbanes-Oxley Act?

• Japan and South Korea

• India and Brazil

• China and Hong Kong

• Germany and France

What action did Congress take regarding non-compliant Chinese companies?

• They offered tax incentives.

• They imposed additional taxes.

• They set a three-year compliance deadline.

• They increased trading hours.

What could happen if Chinese companies do not comply with the new regulations by the deadline?

• They will be given an extension.

• They will be allowed to trade without restrictions.

• They will be suspended from trading on U.S. stock exchanges.

• They will receive a fine.