The U.S. Public Company Accounting Oversight Board (PCAOB), the China Securities Regulatory Commission, and the Ministry of Finance have reached an agreement on the audit supervision of Chinese concept stocks, which Chinese media described as “great news for investors.” However, the SEC chairman warned that Chinese companies still face the risk of delisting if they don’t follow the rules.
On Aug. 26, SEC Chairman Gary Gensler issued a statement saying: “This agreement marks the first time we have received such detailed and specific commitments from China that they would allow PCAOB inspections and investigations meeting U.S. standards.”
However, the China Securities Regulatory Commission put forward various restrictions. An official, when answering reporters’ questions about the agreement, stated that the original working documents to be audited and other documents that the U.S. side asks to review are “obtained and provided through the assistance of the Chinese regulatory agency … and special processing procedures have been set up for specific data such as personal information.”…