Delisting from Exchanges: Tough Prospect for U.S. Listed Companies with Operations Based in China in Light of the Holding Foreign Companies Accountable Act

On May 20, 2020, the U.S. Senate unanimously passed S.945, the Holding Foreign Companies Accountable Act (the “Act”), as introduced by Senators John Kennedy, R-La., and Chris Van Hollen, D-Md. Later that same day, Representative Brad Sherman, D-Ca., introduced in the House of Representatives a bill identical to that passed by the Senate. The swift, unanimous passage of the Act by the Senate sent shockwaves to U.S. listed companies whose operations are based in China and those who plan to get listed on U.S. exchanges.