SEC Tells Auditors to Vet New Chinese Clients That Trade in the U.S.

(Bloomberg) — The U.S. Securities and Exchange Commission (SEC) is telling American audit firms to be cautious about taking on Chinese firms that trade in New York as new clients. 

The warning on Tuesday follows several businesses switching to U.S. auditors amid an ongoing dispute between regulators in Washington and Beijing over access to audit work papers that could lead to about 200 companies being kicked off American stock exchanges. China and Hong Kong are the lone two jurisdictions worldwide that haven’t allowed American inspections of the documents, with officials there citing national security and confidentiality concerns.