back to all Articles
07/14/2020 Source:  The Epoch Times
Author: Humeyra Pamuk, Alexandra Alper 1 min read

Official: Trump Administration to Soon End Audit Deal Underpinning Chinese Listings in US

Scroll down
Official: Trump Administration to Soon End Audit Deal Underpinning Chinese Listings in US
The U.S. Securities and Exchange Commission seal hangs on the facade of its building in Washington, on Sept. 18, 2008. (Chip Somodevilla/Getty Images)

WASHINGTON—The Trump administration plans to soon scrap a 2013 agreement between U.S. and Chinese auditing authorities, a senior State Department official said, a move that could foreshadow a broader crackdown on U.S.-listed Chinese firms under fire for sidestepping American disclosure rules.

The deal, which set up a process for a U.S. auditing watchdog to seek documents in enforcement cases against Chinese auditors, was initially welcomed as a breakthrough in U.S. efforts to gain access to closely guarded Chinese financial information and bestowed a mark of legitimacy on Chinese regulators.

But the watchdog, known as the Public Company Accounting Oversight Board (PCAOB), has long complained of China’s failure to grant requests, meaning scant insight into audits of Chinese firms that trade on U.S. exchanges.

Read more