The China Securities Regulatory Commission and U.S. securities regulators have been locked in a dispute over permitting U.S. assessment of Chinese firm audits, threatening delisting in coming years.
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BEIJING — China has despatched one other sign of progress towards resolving an audit dispute that is threatened U.S.-listed Chinese corporations with delisting.
The China Securities Regulatory Commission stated in an announcement to CNBC Friday that it convened a gathering this week with some accounting companies and informed them to consider preparing for joint inspections.
Chinese and U.S. regulators’ consultations on audit supervision and cooperation are total going effectively, the fee stated.
Since March, the U.S. Securities and Exchange Commission has started to name specific U.S.-listed Chinese stocks for failing to adhere to the Holding Foreign Companies Accountable Act. Passed in 2020, the act would enable the SEC to delist Chinese corporations from U.S. exchanges if American regulators can’t assessment firm audits for three consecutive years.
“We proceed to meet and have interaction with PRC authorities in an effort to obtain a cooperative settlement that gives the PCAOB with the entry required to examine and examine utterly auditors headquartered in mainland China and Hong Kong,” the U.S. Public Company Accounting Oversight Board (PCAOB) stated in an announcement.
“Speculation a few ultimate settlement between the PCAOB and the People’s Republic of China (PRC) authorities on PCAOB entry to audit companies headquartered in China and Hong Kong is untimely,” the PCAOB assertion stated.
Accounting agency KPMG declined to remark. Deloitte, PwC and EY didn’t reply to CNBC’s requests for remark.