Market digesting coronavirus’ potential impact: SEC chairman
SEC Chairman Jay Clayton discusses the impact of coronavirus on the stock market and how China treats its companies listed on the New York Stock Exchange as well as his agency’s plan for dealing with digital currency.
Securities and Exchange Commission Chair Jay Clayton said he is pressuring major accounting firms to scrutinize Chinese firms because of a lack of U.S. oversight amid the coronavirus outbreak on "Mornings with Maria" on Monday.
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The Public Company Accounting Oversight Board (PCAOB), due to many of these Chinese companies' state control, is unable to audit all their records.
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"Late in the fall last year and in the last couple of weeks, I and my colleagues have met with the big four accounting firms and said, 'What are you doing to do more in light of the fact that the PCAOB can't go out and inspect these audits of these Chinese firms?'" Clayton said.
There are 156 Chinese companies listed on U.S. exchanges combined carrying a total market cap of $1.2 trillion as of February 2019, according to the U.S.-China Economic Security Review Commission.