Chinese authorities have long resisted audit papers leaving China, making it hard for U.S. auditing regulators to check the quality of audits of Chinese companies.

But a bill passed by the U.S. Senate which, if signed by President Donald Trump, would require U.S.-listed foreign companies to disclose levels of government control. It would also require that Chinese companies comply with U.S. oversight of their audits or face being delisted.

"For U.S. investors, it will mean fewer listings and it will be harder to capture the benefits of growth in China," said John Ott, a partner with Bain & Company and a leader with its Greater China financial services practice.