China-based companies with listings in the U.S. are likely to feel the chilling effects of a U.S. Securities and Exchange Commission action against the Chinese affiliates of five leading accounting firms. The SEC says the affiliates refused to produce documents related to investigations of suspicions of accounting fraud at nine Chinese companies. However, "the biggest loser if [a resolution of the issue isn't negotiated] is the American exchanges because it makes the U.S. a much less attractive place to raise capital," said Paul Gillis, an accounting professor at Peking University's Guanghua School of Management.