The Senate unanimously approved the bill
Chinese companies can get a formal ban on placing on American sites. The U.S. Senate unanimously passed the “Foreign Company Liability Act” S.945, which requires foreign organizations traded on U.S. exchanges to comply with and report under U.S. law.
Now this bill should be approved by the House of Representatives. According to the bill, in order to be traded in New York or on other markets, the company must provide the right to audit to the U.S. regulator, as well as confirmation that it is not controlled by a foreign government.
Historically, Chinese companies were not required to follow U.S. regulations in order to obtain the right to float on U.S. exchanges.
After the news of the bill, shares of Chinese giant Alibaba Holding Group Ltd. fell by more than 2% on the New York Stock Exchange while growing on the Hong Kong Exchange.
Recall that the key U.S. indexes rose by 1-2% at the close of trading on Wednesday. Industrial index Dow Jones rose by 369 points (1.52%) to 24,575. NASDAQ added 190 points (2.08%) to 9,375. The S&P 500 was up 48 points (1.67%) to 2,971.