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21:59 GMT
WASHINGTON, June 4 (KUNA) - US Secretary of State Mike Pompeo commended Nasdaq Stock Market for requiring auditing firms to ensure all listed companies comply with international reporting and inspection standards.
President Donald Trump's Administration is "committed to ensuring that all American businesses and investors can operate on a level playing field with the rest of the World," Pompeo said in a statement, reacting to new Nasdaq restrictions affecting listing of Chinese companies.
"I applaud Nasdaq for requiring auditing firms to ensure all listed companies comply with international reporting and inspection standards," he said.
He added Nasdaq's announcement was particularly important given a pattern of "fraudulent accounting practices in China-based companies."
To protect American investors and US national security, said Pompeo, Trump moved to stop the investment of US federal employee retirement funds into Chinese companies.
Trump also instructed the Presidential Working Group on Financial Markets to study the differing practices of Chinese companies listed on the US financial markets, he added.
Pompeo said American investors should not be subjected to "hidden and undue risks associated with companies that do not abide by the same rules as US firms."
The US is sometimes accusing Chinese companies of failing to abide by regulations and criteria followed by the American firms. (end)
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