A Chinese nationwide flag flutters initiating air the China Securities Regulatory Commission (CSRC) building on the Monetary Side road in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

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HONG KONG, Nov 25 (Reuters) – Chinese authorities are working with U.S. counterparts to prevent Chinese companies being delisted from U.S. stock exchanges, a Chinese regulatory reliable talked about on Thursday, as a lengthy dispute about auditing requirements rumbles on.

U.S. authorities are interesting in direction of kicking foreign companies off American stock exchanges if their audits fail to satisfy U.S. requirements.

The Public Company Accounting Oversight Board (PCAOB) and U.S. policy makers earn long complained of a lack of access to audit working papers for U.S.-listed Chinese companies. Citing nationwide security concerns, Chinese authorities earn been reluctant to permit in a foreign country regulators to inquire working papers from local accounting companies.

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“We don’t judge that delisting of Chinese companies from the US market is a right ingredient either for the companies, for global merchants or Chinese-US family contributors,” Shen Bing, director total of the China Securities Regulatory Commission’s department of worldwide affairs, instructed a conference in Hong Kong.

“We are working very laborious to solve the auditing scream of affairs with U.S. counterparts, the verbal exchange is for the time being mild and initiating. There might be a menace of delisting of these companies nonetheless we’re working very laborious to prevent it from going down,” he added.

In December 2020, in some unspecified time in the future of the final weeks of his administration, President Donald Trump signed a legislation geared toward striking off foreign companies from U.S. exchanges if they didn’t watch American auditing requirements for 3 years in a row.

A procedure on the organisation’s net situation showed China as essentially the simplest jurisdiction that denied the PCAOB “vital access to behavior oversight”.

Talking on the same conference, Ashley Alder, CEO of Hong Kong’s Securities and Futures Commission talked about he feared Sino-U.S. tensions might presumably well prevent a resolution.

“Most often politics can interrupt technical solutions which would be sensible and achievable, and I engage up a stage of political attitude within the U.S. establishment that is rarely any longer necessarily conducive to a nearer .”

Hong Kong beforehand confronted identical considerations with access to mainland China audit working papers, nonetheless Alder talked about the SFC’s relationship with the CSRC and a 2019 settlementhad helped unravel these.

Hong Kong has benefitted from the Sino-U.S. spat, as a string of U.S.-listed Chinese companies earn conducted secondary listings in the metropolis in recent years, partly as a abet up in case the companies are deslisted from the Nasdaq or NYSE, narrate market participants.

The Hong Kong stock swap, final week, confirmed it would proceed with rule changes to perform it more straightforward for in a foreign country-listed Chinese companies to produce secondary listings, and for companies to swap a Hong Kong secondary itemizing to a vital one.

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Reporting by Scott Murcoch; Writing by Alun John; Editing by Muralikumar Anantharaman & Simon Cameron-Moore

Our Standards: The Thomson Reuters Belief Tips.

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