The Law and Geopolitics Series
US Delisting of Chinese Companies: Prospects and Challenges
April 22nd, 2022, 13:00 – 14:00
Zoom to be conducted in English
In recent weeks, market panic has erupted after the US Securities and Exchange Commission publicly identified several Chinese companies who face delisting from US capital markets for failing to adhere to US accounting standards. In the absence of a deal between China and the United States to allow the latter to inspect Chinese auditors, the risk of delisting grows more acute by the day. Earlier this month, the China Securities Regulatory Commission announced proposals to soften China’s domestic audit rules, potentially opening the door for future Sino-US cooperation. Despite this positive development, US regulators have warned that hopes of an imminent deal being struck are premature and the future for US-listed Chinese companies remains uncertain. To explore these thorny issues, we have put together a panel of experts with tremendous insight on US securities law, accounting regulation and cross-border data transfer issues.
Fang Liu 方劉 is a partner at Clifford Chance who focuses on securities offerings, mergers and acquisitions. He represents issuers and global investment banks in Hong Kong and US IPOs. He also advises on China inbound and outbound acquisitions, investments, privatizations and related financings. His deal experience extends across a wide variety of sectors, including healthcare and consumer goods, TMT and energy and natural resources.
Paul Gillis is a professor of practice and co-director of the IMBA program at Peking University’s Guanghua School of Management. He specializes in tax, financial accounting, corporate governance, theory of hegemony, variable interest entities, the International Financial Reporting Standards and the Generally Accepted Accounting Principles. Before joining academia, Professor Gillis worked at PricewaterhouseCoopers for 28 years before retiring in 2004. He was also a member of the Standing Advisory Group of the Public Company Accounting Oversight Board from 2012 – 2013. He has previously testified before the US-China Security and Economic Commission, the International Auditing and Assurance Standards Board and the Organisation for Economic Co-operation and Development. Professor Gillis also runs a blog at www.chinaaccountingblog.com which covers transnational regulation of accounting and Chinese accounting issues.
Luo Yan 羅嫣 is a partner at Covington and Burling and advises clients on a broad range of regulatory matters in connection with data privacy, cybersecurity, antitrust and competition, as well as international trade laws in the United States, EU, and China. Yan has significant experience assisting multinational companies navigating the rapidly-evolving Chinese cybersecurity and data privacy rules. Her work includes high-stakes compliance advice on strategic issues such as data localization and cross border data transfer, as well as data protection advice in the context of strategic transactions. She also advises leading Chinese technology companies on global data governance issues and on compliance matters in major jurisdictions such as the European Union and the United States.
Dr. Angela Zhang, Director of the Centre for Chinese Law at the University of Hong Kong