On March 17, according to the Wall Street Journal, sources familiar with the matter revealed that the U.S. Securities and Exchange Commission (SEC) is drafting a proposal to eliminate the requirement for publicly traded companies to report their earnings quarterly, instead allowing companies to choose to disclose their results semi-annually. The regulator may release the proposal as early as next month. To prepare for the proposal, the regulator has consulted with officials from major exchanges to discuss potential rule adjustments. Once the proposal is released, it will enter a public comment period, which typically lasts at least 30 days, after which the SEC will vote on the proposal.
The rule is expected to make quarterly reporting optional, rather than eliminating it entirely. Last September, it was reported that long-term stock exchanges had petitioned the SEC to eliminate quarterly earnings reporting requirements. Within days, both Trump and SEC Chairman Atkins expressed support for the idea. For over 50 years, U.S. listed companies have disclosed their earnings every three months. (Jinshi)
