WASHINGTON / HONG KONG (Reuters) – Stocks of publicly traded Chinese companies fell sharply in Asia on Thursday after the US Securities Commission took measures that would kick foreign companies off US exchanges if they fail to meet US auditing standards.

FILE PHOTO: The Securities and Exchange Commission seal hangs on the wall at the SEC headquarters in Washington on June 24, 2011. REUTERS / Jonathan Ernst

The Securities and Exchange Commission (SEC) move adds to the unprecedented government crackdown in China against domestic tech companies, citing concerns that they have built a market power that is stifling competition.

The Holding Foreign Companies Accountable Act, signed by then-President Donald Trump in December, aims to remove Chinese companies from US stock exchanges if they fail to comply with American auditing standards for three consecutive years.

The rules also require companies to demonstrate to the SEC that they are not …

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