China securities regulator on U.S.-listed Chinese stocks audit delisting
China Securities Regulatory Commission (US Securities Regulators) and the U.S. Securities Regulatory Commission are locked in a dispute about allowing U.S. inspection of Chinese company audits. This has threatened delisting over the coming years.
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BEIJING — China has sent another signal of progress toward resolving an audit dispute that’s threatened U.S.-listed Chinese companies with delisting.
CNBC was informed Friday by the China Securities Regulatory Commission that it had convened a meeting last week with some accounting companies and encouraged them to think about preparing to conduct joint inspections.
The commission stated that the consultations between U.S. and Chinese regulators regarding audit supervision and cooperation were going well.
The U.S. Securities and Exchange Commission (USSEC) has been in operation since March. started to name specific U.S.-listed Chinese stocksFor not adhering to the Holding Foreign Companies Accountable Act.The 2020 act was passed. It would permit the SEC delist Chinese companies from U.S. stock exchanges, if American regulators are unable to review audits of company accounts for at least three years consecutively.
In a statement, the U.S. Public Company Accounting Oversight Board said that it continues to interact with PRC authorities to try to negotiate a cooperative accord that gives the PCAOB the right to inspect and probe completely auditors located in Hong Kong or mainland China.
According to the PCAOB, speculation about the final agreement between China’s People’s Republic of China’s (PRC) authorities regarding PCAOB access for audit firms located in China and Hong Kong was premature.
KPMG is an accounting firm that declined to comment. CNBC received no comment from Deloitte and PwC. EY was not contacted.