China’s market regulator, China Securities Regulatory Commission, says that its working hard with United States market regulators with an aim to stop Chinese getting delisted from US stock markets when they fail to meet auditing standards used in the United States.
For quite some time now, this has been a major issue as Chinese companies listed on the U.S stock exchanges have been getting listed due to auditing standards hurdles. At some point, these companies had to seek secondary listings from their home markets such in case of anything.
For the longest time, the Public Company Accounting Oversight Board (PCAOB) and U.S. policy makers have been complaining of lack of access to audit working papers for Chinese companies listed on the U.S markets.
According to the Chinese authorities, national security concerns have been the reason why the companies have been reluctant to allow foreign regulators inspect and audit working papers from local accounting firms.
“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. 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,” said the director general of China Securities Regulatory Commission, Shen Bing.