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China to change confidentiality rules involving companies’ offshore listings -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: A Chinese language nationwide flag flutters exterior the China Securities Regulatory Fee (CSRC) constructing on the Monetary Avenue in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

SHANGHAI (Reuters) – China on Saturday proposed revising confidentiality guidelines involving offshore listings, eradicating a authorized hurdle to Sino-U.S. cooperation on audit oversight whereas placing the onus on Chinese language corporations to guard state secretes.

The draft rule, introduced by the China Securities Regulatory Fee, is Beijing’s newest try and resolve a long-running audit dispute with Washington that might result in roughly 270 Chinese language corporations being pressured to delist from U.S. exchanges in 2024.

China’s up to date guidelines will scrap necessities that on-site inspection of overseas-listed Chinese language corporations be performed primarily by Chinese language regulators.

That might open the door to inspections by U.S. regulators, who demand full entry to such companies’ audit working papers, that are saved in China.

The draft makes clear that Chinese language corporations are accountable for data safety in abroad listings.

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