State Comptroller Nieshalla calls on SEC to investigate delisting Chinese companies

Tuesday, June 3, 2025 at 6:00 PM

State Comptroller Elise Nieshalla joined a coalition of state financial officers from across the country urging the U.S. Securities and Exchange Commission (SEC) to investigate the continued listing of China-based companies on American stock exchanges.

In a formal letter addressed to SEC Chairman Paul Atkins, the signatories called attention to the growing risk these entities pose to U.S. investors due to ongoing interference by the Chinese Communist Party (CCP), and the failure of Chinese firms to meet U.S. transparency, accounting and audit standards.

“As stewards of invested public funds, we have a responsibility to protect our beneficiaries from foreign entities that seek to exploit our capital markets while evading accountability,” said Comptroller Nieshalla.

“Indiana’s Public Retirement Systems and Deferred Compensation Plans have already taken that step to divest from Chinese entities for these reasons.”

The financial officers cite several troubling developments, including the CCP’s crackdown on independent due-diligence firms, widespread auditing failures uncovered by the Public Company Accounting Oversight Board (PCAOB) and the systematic use of high-risk shell structures known as Variable Interest Entities (VIEs), which deny U.S. investors true ownership of Chinese operating companies.

The letter concludes by reaffirming their commitment to working with federal partners to uphold the integrity of the U.S. financial system and defend the interests of Indiana investors.

Click here to read the full letter.