The US State Department has called on American universities and colleges to divest assets in Chinese companies. This is reported in a letter received by the leadership of the American scientific centers from the US Deputy Secretary of State for Economic Growth, Energy Security, and Environmental Protection Keith Krak.
"Heads of university financial funds should sell off shares in Chinese companies due to fears that a change in accounting standards could result in the massive exclusion of Chinese companies from US stock exchanges by the end of next year,вЂќ the letter, which Bloomberg was able to read. According to Krak, shareholders are also at risk that Chinese companies will be forced to reassess their previous financial statements.
Earlier, US Treasury Secretary Stephen Mnuchin said that Chinese companies that will not comply with the new US accounting rules will leave US exchanges by the end of 2021. According to the PRC Securities Control Committee, the Chinese authorities hope through dialogue to settle the issue of the planned tightening of control over the financial statements of Chinese companies listed on American exchanges with the United States. The last contact on this topic took place on 4 August.
As previously reported by The Wall Street Journal, the administration of US President Donald Trump expects to oblige Chinese companies whose shares are traded on American stock exchanges to provide financial statements to the United States financial regulators. The plan, which is under development, will require commercial organizations that are already listed on US exchanges to adopt new rules by 2022. Enterprises planning to enter an IPO (initial public offering) are required to admit US auditors to their reports.