Pompeo urges global stock exchanges to tighten rules for Chinese companies
Secretary of State Mike Pompeo warned American investors on Thursday against “fraudulent accounting practices of China-based companies and suggest the Nasdaq’s recent decision to tighten listing rules for such players should be a model for all other exchanges around the world.
“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, he said in a statement. “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, Pompeo added. The secretary’s comments represent the latest flashpoint in the relationship between Washington and Beijing at a time of escalating tensions between the world’s two largest economies over trade, the handling of the coronavirus pandemic as well as a spat over Hong Kong.