One Good Reason to Delist Chinese Companies
They shouldn't be on U.S. exchanges if they won't submit to the same audit scrutiny as everyone else.
It’s time to play by the rules.
Photographer: Darryl Oumi/Getty Images
No one would accept Goldman Sachs Group Inc. or Tesla Inc. being able to access U.S. capital markets without regulatory oversight. So it’s indefensible that Chinese companies listed on the Nasdaq or New York Stock Exchange enjoy this privilege. The news that Trump administration officials are considering delisting such firms is therefore overdue and welcome.
Lost in the debate over measures to restrict portfolio flows to China have been more mundane questions about the expectations placed on companies that list in the U.S. The delisting proposal is the culmination of a long-simmering dispute over whether the U.S. Securities and Exchange Commission and government have jurisdiction over Chinese companies that have their shares traded on American exchanges.