Washington, D.C. – Congresswoman Elise Stefanik yesterday voted in favor of the Holding Foreign Companies Accountable Act, legislation that prohibits securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with the Public Company Accounting Oversight Board (PCAOB) audits for three years in a row. Congress established the PCAOB to inspect audits of public companies, ensuring the information companies provide to the public is accurate, independent, and trustworthy. Currently, China’s communist government refuses to allow the PCAOB to inspect audits of companies registered in China and Hong Kong. This bill would also require public companies to disclose whether they are owned or controlled by a foreign government, like China’s communist government.
“Foreign companies, especially those Chinese-owned companies who falsely represent themselves in financial documents, must be held accountable,” said Congresswoman Stefanik. “These dishonest companies are putting Americans who invest in the U.S. stock exchange at risk by being dishonest with their financial records. We must protect American investors, especially in the wake of the COVID-19 pandemic, by holding all publicly listed companies to the same standards. I commend my Senate and House colleagues for coming together in a bipartisan manner to send this important legislation to the President’s desk.”