Recently proposed legislation in the United States, S. 945 the Holding Foreign Companies Accountable Act (the Act), along with rising tension between the United States and China present significant challenges for US-listed Chinese companies. This article explains the details of the Act and how it impacts US-listed Chinese companies and provides options for US-listed Chinese companies to exit the US public markets, including: (1) going private transactions, such as negotiated share acquisitions, open-market share purchases and public tender offers for shares; (2) delisting from US securities exchanges, such as the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations exchange (Nasdaq); (3) deregistering securities registered with the US Securities and Exchange Commission (SEC); and (4) secondary (to primary) listings in Hong Kong.
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