![]() ![]() The companies must also obtain government permission before providing foreign parties with documents or materials relating to capital markets activities. The problem is that the Chinese regulators do not allow the audits to be sent to the PCAOB.Ĭhinese law requires companies to obtain the permission of the government before allowing foreign securities regulators to inspect their activities. The Chinese side claims that Chinese firms are in compliance, as they are audited by the big four accounting firms. The Public Company Accounting Oversight Board ( PCAOB) was created by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies, providing external and independent oversight of auditors. exchanges that refuse to have their audits verified. Promulgated in compliance with the Holding Foreign Companies Accountable Act (HFCAA), the rules are meant to counter Chinese companies listed on U.S. The shares of delisted firms could continue to trade in the U.S., over the counter. The earliest companies might be delisted would be 2024. 10, under which companies that fail to comply with audits for three consecutive years will incur a five-year trading ban. ![]() It will make a final decision about the listing venue within the next two weeks, they added.The Securities and Exchange Commission has finalized new rules, effective Jan. The CAC and Ximalaya did not respond to requests for comment. HONG KONG China’s largest online audio platform Ximalaya will file for its Hong Kong initial public offering (IPO) next week after dropping its plans to list in the United States, according. The Cyberspace Administration of China on Sunday banned Didi from app stores after saying it posed a cybersecurity risk for customers. Shanghai-based Ximalaya, which filed publicly for the U.S. From May 22, Didi’s ride-hailing drivers in Latin America will need to take a selfie with mask on to pass the AI verification, and from June they will need to report their body temperature to. 'Didi Chuxing app is found to have severely violated the laws. ![]() IPO in late April, has started pre-marketing the float since early May and looked to raise about $500 million, said two of the sources. The potential change of venue comes as China further tightens its ideological grip on private media and internet businesses amid China-U.S. The decision to pull the LinkDoc deal was due to the crackdown, the sources said. tensions.Ĭhina's ruling Communist Party (CCP) has long maintained a tight grip over ideology and propaganda, especially over state media which it can use to assert its authority. ![]() One of the sources said the regulatory uncertainty affected both the company and investors. LinkDoc filed for an initial public offering in the United States last month and was due to price its shares after the U.S. HONG KONG Chinese medical data group LinkDoc Technology has called off its U.S. Ximalaya plans to seek an initial public offering in Hong Kong, scrapping plans to go public in the US after Beijing implemented new rules for overseas listings. "Domestic regulators have become more uncomfortable with Chinese media, content firms which operate in the country and obtain voluminous user data, but are incorporated offshore and now seek overseas listings," one of the sources said.Īnother of the sources said that the Ximalaya move also comes amid Beijing's growing concerns that U.S. initial public offering at the last minute, two people familiar with the transaction said, becoming the first casualty of Beijing’s clampdown on overseas listings. China is pressing the country's largest online audio platform Ximalaya to drop plans to list in the United States and go for Hong Kong instead, three people with knowledge of the matter said, showing how the authorities are seeking to further tighten their grip over private media and internet businesses. The company planned to raise up to 210 million on the tech-heavy. Ximalaya, the country's top podcast and audio app operator which aimed to go public in New. Regulators will potentially gain greater access to audit documents of Chinese companies listed in New York, notably those that involve massive user or national data. ![]()
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