Kevin Yao

BOAO, CHINA, (Reuters) – China’s securities regulator is in regular discussions with U.S. regulators regarding audit cooperation. The official from China said that he expected a deal soon.

Fang Xinghai is the vice-chairman of China Securities Regulatory Commission (CSRC). These comments are Beijing’s latest signal that they want to end the decades-old dispute with Washington.

Fang stated that negotiations are currently conducted via videolink every two weeks to complete details.

“I feel very positive that we’ll reach an agreement within the next few days, so that PCAOB could carry out checks on Chinese accounting businesses in China in a fair way. It is likely that this uncertainty will end soon and it will be good for Chinese stocks traded overseas.

The Public Company Accounting Oversight Board, the U.S. auditor regulator, demands complete access to all audit work papers for New York-listed Chinese businesses.

China denied China’s request for information on national security reasons. A standoff which could see 270 Chinese businesses delisted from Amercian stock exchanges in 2024 is possible.

China’s April 2nd draft confidentiality regulations were published by China. This would allow U.S. regulators possible access to these working papers via joint inspections and other forms of regulatory cooperations.

Chinese businesses are now required to guard state secrets under the new rules.

Although there were reports in the media suggesting that progress was being made, U.S. Securities and Audit regulators strongly resisted speculation of an imminent agreement with China.

U.S. Securities and Exchange Commission, (SEC), identified 11 U.S. traded Chinese companies in March. This includes Yum China and Baidu Inc. (NASDAQ:) and is increasing.

Fang stated that negotiations between the CSRC-led Chinese negotiation group and the SEC have progressed very well since the SEC’s chairmen were replaced.

He reiterated his belief that the CSRC would support companies to list abroad and allow them to pick markets for their listings.