Commentary
Five Chinese companies listed on U.S. stock exchanges said on Aug. 15 that they would voluntarily delist. The companies included Sinopec, China Life Insurance, Aluminium Corporation of China, PetroChina, as well as Sinopec entity Sinopec Shanghai Petrochemical Co. All of these companies were targeted by U.S. regulators for possible delisting as a result of their refusal to comply with U.S. audit requirements.
For decades, regulators have demanded that the 200 Chinese companies listed on U.S. exchanges comply with the same audit requirements as all other listed companies. The Chinese side has argued that the financial records of their companies are sensitive data and that due to security concerns, Chinese law prohibits firms from submitting their financial records to foreign auditors….