China firm disclosure

Chinese companies that list on US stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections, the Securities and Exchange Commission said on Thursday.

The rule advances a process that could lead to more than 200 companies being kicked off US exchanges and could make some Chinese companies less attractive to investors.

Unlike many countries, China has not allowed the SEC’s accounting body, the Public Company Accounting Oversight Board, to inspect its auditors.