US regulators in China to discuss audit compliance
The stand-off, if not resolved, could see Chinese companies kicked off New York bourses
US regulatory officials have arrived in Beijing seeking to settle a long-running dispute over the auditing compliance of U.s.-listed Chinese firms, three people familiar with the matter told Reuters.
The stand-off, if not resolved, could see Chinese firms kicked off New York bourses. This week the U.S. Securities and Exchange Commission (SEC) added over 80 firms, including e-commerce giant Jd.com and China Petroleum & Chemical Corp to the list of firms facing possible expulsion.
The talks between officials from the U.S. Public Company Accounting Oversight Board (PCAOB) and their counterparts at the China Securities Regulatory Commission (CSRC) can be described as 'late stage' after China made concessions in recent months, the people said.
The PCAOB officials are expected to exit quarantine and start working next week, one of the people said. If this visit proceeds as expected, the PCAOB is likely to send a bigger team to China later this year to conduct on-site inspections of local auditors, the person said.
The sources declined to be identified due to the sensitivity of the issue. The
PCAOB did not respond to requests for comment.
The CSRC did not directly address Reuters queries about the arrival of PCAOB officials or the status of discussions.
Authorities in China have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns.
But in a key concession, Chinese regulators last month proposed revising confidentiality rules for offshore listings and scrapping requirements that on-site inspections of overseas-listed Chinese firms be conducted mainly by domestic regulators.
This week the US SEC added over 80 firms to the list of companies facing possible expulsion