Chinese Companies Could Be Delisted From U.S. Stock Exchanges: What It Means for Investors

The U.S. Senate approved the Holding Foreign Companies Accountable Act (HFCAA) on Wednesday, sweeping legislation that could result in non-U.S. companies that fail to meet a number of strict criteria being barred from trading on U.S. stock exchanges. The bill was approved without objection. 

One of the key provisions of the legislation is that companies would be required to certify that "they are not owned or controlled by a foreign government." Lawmakers would also require that these statements be backed up by an audit conducted by the Public Company Accounting Oversight Board (PCAOB). 

The legislation would still need to pass the House of Representatives before being sent to President Trump for final approval. If passed, though, the law could have far-reaching effects on foreign companies already listed on U.S. exchanges, especially those from China.

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Source Fool.com