Regulatory Challenges for Chinese Concept Stocks Listed in the U.S.

Abstract

This paper provides a comprehensive analysis of the regulatory challenges facing Chinese concept stocks listed in the U.S., with a specific focus on the impact of geopolitical tensions, regulatory disparities, and high-profile financial fraud cases such as Luckin Coffee. It delves into the intricate dynamics between the U.S. Securities and Exchange Commission (SEC) and Chinese regulatory authorities, underscored by the enactment of the Holding Foreign Companies Accountable Act (HFCAA). Through examining these issues, the paper highlights the complexities of navigating cross-border listings within the fraught U.S.-China geopolitical landscape.

The analysis reveals the multifaceted nature of the regulatory challenges, including auditing disputes, information security concerns, and the broader implications of international political shifts on financial markets. The Luckin Coffee scandal serves as a pivotal case study, illustrating the risks of financial misconduct and the difficulties faced by U.S. regulators in ensuring transparency and accountability among foreign companies operating within its borders.