Even as a long going dispute over maintaining similar audit standards for Chinese companies continues between the United States and China, reports quoting a Chinese regulatory official claim that authorities in Beijing are currently working with their counterparts from Washington to avoid Chinese firms that are listed on American stock exchanges from being delisted from the browsers over auditing standards.
Authorities in the US have already initiated measures that would end in those Chinese companies that 0fail to maintain US audit standards being delisted from American stock exchanges.
There have been long-standing complaints by the Public Company Accounting Oversight Board (PCAOB) of the US and US policymakers of them not being given access for auditing of the working papers of the Chinese companies that are listed on US exchanges. Chinese authorities have on the other hand declined to allow foreign regulators from examining the working papers from local accounting firms because of concerns over China’s national security.
"We don’t think that delisting of Chinese firms from the US market is a good thing either for the companies, for global investors or Chinese-US relations," Shen Bing, director-general of the China Securities Regulatory Commission's department of international affairs, told a conference in Hong Kong.
"We are working very hard to resolve the auditing issue with U.S. counterparts, the communication is currently smooth and open. There is a risk of delisting of these companies but we are working very hard to prevent it from happening," he added.
A law was signed by the former US President Donald Trump during the final weeks of his presidency in December 2020 that targeted the removal of those foreign companies that are listed on American stock exchanges in the eventuality of such companies not being able to comply with American auditing standards for a period of three years in a row.
The law was enacted and implemented in September by the PCAOB.
According to a map published on the website of the PCAOB, the only audit jurisdiction that has denied the PCAOB "necessary access to conduct oversight" was China.
(Source:www.channelnewsasia.com)
Authorities in the US have already initiated measures that would end in those Chinese companies that 0fail to maintain US audit standards being delisted from American stock exchanges.
There have been long-standing complaints by the Public Company Accounting Oversight Board (PCAOB) of the US and US policymakers of them not being given access for auditing of the working papers of the Chinese companies that are listed on US exchanges. Chinese authorities have on the other hand declined to allow foreign regulators from examining the working papers from local accounting firms because of concerns over China’s national security.
"We don’t think that delisting of Chinese firms from the US market is a good thing either for the companies, for global investors or Chinese-US relations," Shen Bing, director-general of the China Securities Regulatory Commission's department of international affairs, told a conference in Hong Kong.
"We are working very hard to resolve the auditing issue with U.S. counterparts, the communication is currently smooth and open. There is a risk of delisting of these companies but we are working very hard to prevent it from happening," he added.
A law was signed by the former US President Donald Trump during the final weeks of his presidency in December 2020 that targeted the removal of those foreign companies that are listed on American stock exchanges in the eventuality of such companies not being able to comply with American auditing standards for a period of three years in a row.
The law was enacted and implemented in September by the PCAOB.
According to a map published on the website of the PCAOB, the only audit jurisdiction that has denied the PCAOB "necessary access to conduct oversight" was China.
(Source:www.channelnewsasia.com)
