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Yahoo
3 days ago
- Business
- Yahoo
IN State Comptroller Nieshalla calls to delist Chinese companies
HENDERSON, Ky. (WEHT) – Indiana State Comptroller Elise Nieshalla joined a coalition of state financial officers from across the country urging the U.S. Securities and Exchange Commission (SEC) to investigate the continued listing of China-based companies on American stock exchanges. In a formal letter addressed to SEC Chairman Paul Atkins, the signatories called attention to the alleged growing risk these entities pose to U.S. investors due to ongoing interference by the Chinese Communist Party (CCP), and the failure of Chinese firms to meet U.S. transparency, accounting and audit standards. Disaster Recovery Center in Daviess County reopens 'As stewards of invested public funds, we have a responsibility to protect our beneficiaries from foreign entities that seek to exploit our capital markets while evading accountability,' said Comptroller Nieshalla. 'Indiana's Public Retirement Systems and Deferred Compensation Plans have already taken that step to divest from Chinese entities for these reasons.' Officials say the financial officers cite several troubling developments, including the CCP's alleged crackdown on independent due-diligence firms, widespread auditing failures uncovered by the Public Company Accounting Oversight Board (PCAOB) and the systematic use of high-risk shell structures known as Variable Interest Entities (VIEs), which allegedly deny U.S. investors 'true ownership' of Chinese operating companies. Daviess County planning major road widening project The letter concludes by reaffirming the financial officers' commitment to working with federal partners to uphold 'the integrity of the U.S. financial system' and defend the interests of Indiana investors. The full letter can be read below. Delisting-LetterDownload 'Eyewitness News. Everywhere you are.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
3 days ago
- Business
- Yahoo
Indiana comptroller calls for SEC to delist Chinese companies
Comptroller Elise Nieshalla testifies before the Senate Elections Committee on Monday, Jan. 13, 2025. (Leslie Bonilla Muñiz/Indiana Capital Chronicle) Indiana, alongside 20 other states, penned a letter last month urging the Securities and Exchange Commission to investigate delisting China-based companies on U.S. stock exchanges 'to protect American investors.' Indiana Comptroller Elise Nieshalla and other state financial officers said there is a growing risk posed by the China-based companies due to Chinese Communist Party interference and widespread failures to meet U.S. transparency, accounting and auditing standards. 'As stewards of invested public funds, we have a responsibility to protect our beneficiaries from foreign entities to seek to exploit our capital markets while evading accountability,' Nieshalla said in a press release. CONTACT US The letter highlights the Chinese Communist Party's crackdown on independent due-diligence firms and points to findings by the Public Company Accounting Oversight Board that revealed auditing failures among Chinese companies. It also states that the CCP's systematic use of Variable Interest Entities — an organization that is controlled through contractual agreements rather than direct ownership — prevents U.S. investors from owning the company. The state financial officers also direct the SEC to investigate potential violations of the Securities Exchange Act, including disclosure of controls and procedures, internal financial reporting mechanisms, falsified accounting records and manipulative or deceptive practices. They alleged that the CCP's efforts to suppress transparency exacerbated these issues. 'As state financial officers, part of our responsibility is to ensure that the American people's finances – and our American financial system – are protected from foreign actors who mean to do us harm,' the signatories said in the letter. Indiana has recently purged Chinese companies from state investments. In 2023, legislation was passed that required the Indiana Public Retirement System to divest from any entities that do military or intelligence work or are controlled by the Chinese government. Within a year, INPRS eliminated its $1.2 billion worth of investments in Chinese entities. Delisting-Letter SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
