China-U.S. Audit Deal Needed Very Soon to Avoid Delistings, SEC Chief Says
(Bloomberg) — China and U.S. officials must reach an agreement “very soon” over access to audit work papers for Chinese companies to avoid being kicked off American stock exchanges, Securities and Exchange Commission (SEC) Chair Gary Gensler said Wednesday.
Regulators from the two countries have been locked in negotiations over granting U.S. auditor watchdogs complete and open access to the work papers of about 200 Chinese companies, including Alibaba Group Holding Ltd. and JD.com Inc. An American law signed in 2020 could force those companies off the Nasdaq and the New York Stock Exchange as soon as 2024, if inspectors from the Public Company Accounting Oversight Board (PCAOB) don’t get access.
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