Search ForexCrunch

The US House passes bill that could block Chinese firms from US markets over accounting rules by unanimous voice vote.

 This will prevent some Chinese companies from listing their shares on US exchanges unless they adhere to US auditing standards.

The bill will give Chinese companies such as Alibaba, three years to comply with US rules before being removed from US markets.

Greater scrutiny could also deter other Chinese firms from listing in the United States, said some industry participants.

Market implications

Chinese foreign ministry spokeswoman Hua Chunying has already described it as a discriminatory policy that politically oppresses Chinese firms.

Expect some backlash from China and trade wars to become a theme.

This could potentially take the shine of the high beta forex out there, such as the CAD at fresh highs in recent trade, and particularly the Aussie.