Proposed legislation could deter Chinese biotechs from listing in U.S.

A Senate bill seeking to tighten auditing rules for U.S.-listed foreign companies could end up pushing more Chinese biotechs to go public in Hong Kong. But months of protests and a proposed new national security law under consideration by Beijing could scuttle the opportunity.

The Holding Foreign Companies Accountable Act, which the U.S. Senate passed with unanimous consent Wednesday, would prohibit securities of a company from being listed on any U.S. exchange if the company has failed to comply with the Public Company Accounting Oversight Board’s (PCAOB) audits for three years in a row...