Gary Gensler is a writer.
Alex Wong is a photographer.
The Securities and Exchange Commission finalized a rule Thursday that could lead to the delisting of Chinese companies from the US stock market.
"If you want to issue public securities in the U.S., the firms that audit your books have to be subject to inspection by the PCAOB," said SEC Chair Gary Gensler in a statement.
The SEC's mission to protect investors is furthered by this final rule.
In an op-ed in the Wall Street Journal in September, Gensler warned that his agency could crack down on trading in shares of China-linked companies if they didn't allow their auditors to be inspected by US regulators.
The SEC finalized a rule on Thursday that will implement a law requiring Chinese companies and their auditors to open their books.
The PCAOB, which regulates accounting firms that oversee the books of public companies, has been refused permission by China to review audits of companies such asAlibaba and Baidu whose shares trade in the US for more than a decade.
The PCAOB and the Commission will continue to work together to make sure that foreign auditors play by the rules of the U.S. capital markets. We hope foreign governments will work with the PCAOB to make that happen.
Business Insider has an original article.
