The United States and China reached a tentative agreement to allow U.S. authorities to review audits of Chinese companies. It would be the first step toward avoiding the U.S. delisting of regarding 200 Chinese companies.
As part of the deal, China will grant the Public Company Accounting Oversight Board (PCAOB) access to audit documents and personnel, according to a statement by U.S. and Chinese regulators on Wednesday. The U.S. inspector general said work is expected to begin by mid-September.
“This agreement allows China to conduct PCAOB audits and investigations in line with U.S. standards,” said Gensler, chairman of the U.S. Securities and Exchange Commission. It means that,” he said.
The China Securities Regulatory Commission said that if future cooperation meets the requirements of both the United States and China, delisting of Chinese companies can be avoided.
Original title:US, China Reach Preliminary Deal in Push to Avoid Delistings (1)(excerpt)
(Add and update supervisory comments)
