Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China, U.S. discussing audit deal plan as delistings loom - sources

Stock MarketsApr 29, 2022 04:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: China's and U.S.' flags are seen printed on paper in this illustration taken January 27, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Jing Xu and Julie Zhu

BEIJING/HONG KONG (Reuters) - China and U.S. regulators are discussing operational details of an audit deal that Beijing hopes to sign this year, sources familiar with the matter said, in the latest move to try to keep Chinese companies listed on U.S. exchanges.

A preliminary framework for audit supervision cooperation has been formed, with China likely to classify less information as confidential, potentially allowing more information into companies' audit working papers, one source told Reuters.

China is also discussing details of onsite inspections by the Public Company Accounting Oversight Board (PCAOB), giving the U.S. audit regulator access to such papers, three sources said.

Last week, Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC) said he expected a deal in the near future to allow PCAOB to conduct onsite audit inspections.

In the long-running audit dispute between China and the United States, PCAOB is demanding complete access to audit working papers of New York-listed Chinese companies, which are stored in China.

The request has so far been denied by China on national security grounds - a standoff that could lead to roughly 270 firms being forced to delist from American exchanges by 2024, according to U.S. regulators.

"China will make clear classifications on information disclosure, and will likely narrow the scope of major, confidential information," one of the sources said.

China hopes the deal can be reached this year, and implemented next year, another said.

CSRC referred to official information released by the Chinese and U.S. regulators when replying to a query from Reuters on Friday.

On April 2, China published draft confidentiality rules that would potentially give U.S. regulators access to Chinese firms' working papers. Meanwhile, the rules put the onus on Chinese companies to protect state secrets.

China, U.S. discussing audit deal plan as delistings loom - sources
 

Related Articles

JD Sports Fashion's Cowgill steps down as chairman
JD Sports Fashion's Cowgill steps down as chairman By Reuters - May 25, 2022

(Reuters) - JD (NASDAQ:JD) Sports Fashion said on Wednesday Executive Chairman Peter Cowgill will step down, as the company has decided to speed up the separation of the roles of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email