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New Nasdaq Restrictions Affecting Listing of Chinese Companies, June 4, 2020

United States Secretary of State Michael Pompeo issues a press statement.

June 4, 2020

The Trump Administration is committed to ensuring that all American businesses and investors can operate on a level playing field with the rest of the world. As part of this ongoing effort, I applaud Nasdaq for requiring auditing firms to ensure all listed companies comply with international reporting and inspection standards.

Nasdaq’s announcement is particularly important given a pattern of fraudulent accounting practices in China-based companies. To protect American investors and U.S. national security, President Trump moved to stop the investment of U.S. federal employee retirement funds into Chinese companies. The President also instructed the Presidential Working Group on Financial Markets to study the differing practices of Chinese companies listed on the U.S. financial markets.

American investors should not be subjected to hidden and undue risks associated with companies that do not abide by the same rules as U.S. firms. Nasdaq’s action should serve as a model for other exchanges in the United States, and around the world.

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