Business

China regulator looks for to prevent U.S. delistings of Chinese companies By Reuters

© Reuters. SUBMIT IMAGE: A Chinese nationwide flag flutters outside the China Securities Regulatory Commission (CSRC) structure on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

By Scott Murdoch

HONG KONG (Reuters) -Chinese authorities are dealing with U.S. equivalents to avoid Chinese business being delisted from U.S. stock market, a Chinese regulative authorities stated on Thursday, as a prolonged disagreement about auditing requirements rumbles on.

U.S. authorities are moving towards kicking foreign business off https://www.reuters.com/article/us-usa-sec-foreigncompanies-idUSKBN2BG2AI American stock market if their audits stop working to fulfill U.S. requirements.

The Public Company Accounting Oversight Board (PCAOB) and U.S. policy makers have actually long suffered an absence of access to investigate working documents for U.S.-listed Chinese business. Citing nationwide security issues, Chinese authorities have actually hesitated to enable abroad regulators to examine working documents from regional accounting companies.

“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 global affairs, informed 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 included.

In December 2020, throughout the last weeks of his administration, President Donald Trump signed a law targeted at getting rid of foreign business from U.S. exchanges if they stopped working to adhere to American auditing requirements for 3 years in a row.

The legislation was carried out by the PCAOB in September. A map on the organisation’s site https://pcaobus.org/oversight/international revealed China as the only jurisdiction that rejected the PCAOB “necessary access to conduct oversight”.

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Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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