The House of Representatives passed a bill restricting the placement of Chinese shares in the United States

The House of Representatives passed a bill restricting the placement of Chinese shares in the United States

Previously, the initiative was approved by the Senate

The U.S. House of Representatives has passed a bill that could prevent Chinese companies from offering their shares on U.S. exchanges if they do not meet U.S. auditing standards.

The initiative, previously approved by the Senate, was passed unanimously and will now be sent to President Donald Trump, who is expected to sign it.

The Foreign Companies Liability Bill prohibits the placement of foreign company securities on any U.S. stock exchange if those companies have not met the Auditing Standards of the Public Company Accounting Oversight Board for three consecutive years.

Although the initiative applies to companies from any country, it primarily targets Chinese companies such as Alibaba, an online trading platform, technology firm Pinduoduo and oil giant PetroChina.

Democrat senator Chris Van Hollen, who drafted the bill along with Republican senator John Kennedy, said U.S. investors “have lost their money by investing in Chinese companies that seem legitimate, but don’t follow the same standards as other public companies.