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Chinese companies traded in the U.S. have routinely avoided the SEC’s rigorous company-specific disclosure and audit regulations
WASHINGTON – The American Securities Association (ASA) today released the following statement after China’s Luckin Coffee disclosed an investigation revealing its Chief Operating Officer fabricated sales by $310 million, causing shares to plummet more than 80%:
“Chinese companies traded in the U.S. have routinely avoided the SEC’s rigorous company-specific disclosure and audit regulations, leaving American investors in the dark and at risk, and now we know why,” said ASA CEO Chris Iacovella.
“The Luckin Coffee fraud and resulting shareholder loss is exactly what happens when listed Chinese companies and those in index ETFs are not held to the rigorous transparency and audit standards that American laws require. Thankfully, Senator Kennedy, Senator Van Hollen, and Senator Rubio have all introduced legislation calling on the SEC to put an end to this charade. Today’s news is the canary in the coal mine that should serve as the final wake up call for policymakers to protect American investors and retirement savers from fraudulent Chinese companies.”
Since last year, ASA has been at the forefront raising transparency and accountability concerns regarding American investors funding Chinese fraud. To read ASA CEO Iacovella’s op-ed “Why Are American Investors Funding Chinese Fraud?” in RealClearPolitics, click here.
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ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow,@AmerSecurities on Twitter,@AmericanSecuritiesAssociationon Facebook, and learn more at http://americansecurities.org/.