House members could vote as early as Wednesday to boot Chinese companies with shares on U.S. exchanges if they don’t adhere to audit-oversight rules. Companies such as Alibaba Group Holding Ltd. BABA, -0.44% would be faced with making the transition to undergoing an annual audit reviewed by American regulators within three years or be kicked off the New York Stock Exchange or Nasdaq Stock Market. The bipartisan legislation, which requires a two-thirds majority for passage, unanimously passed the Senate in May. Chinese officials have criticized the bill, which is much harsher than a Securities and Exchange Commission proposal under consideration that would require audit inspection as a condition of continued listing on a stock exchange, but would let noncompliant companies trade over the counter.
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