China United States of America Photo: VCG
As U.S. inspectors reportedly prepare to begin reviewing audit records of Chinese companies listed on U.S. exchanges, economists are urging U.S. regulators to serve market fairness and not let their work be tainted by “political factors.”
“The review should serve market fairness, rather than mixing in artificial political factors,” Dong Shaopeng, a senior researcher at the Chongyang Institute of Financial Studies at Renmin University of China, told China Direct.
He also pointed out that the confrontational sentiment of the American side is relatively difficult, saying that he hopes that the audit will be carried out on the principle of cooperation, with respect for the laws of both countries and with the aim of protecting the interests of investors. .
According to a recent Wall Street Journal report, inspectors from the US Public Company Accounting Oversight Board (PCAOB) are preparing to travel to Hong Kong to review the audit records of Chinese listed companies, the board’s chairman said. Securities and Exchange Commission, Gary Gensler.
The PCAOB is a non-profit organization established by the United States Congress and overseen by the United States Securities and Exchange Commission (SEC).
The review process is expected to take eight to 10 weeks, the report said, adding that the companies that will be subject to review will include Alibaba, JD.com and Yum China Holdings.
PwC Hong Kong and KPMG China are the first accounting firms to help the United States review select audit clients, according to a report by the South China Morning Post.
China and the United States have been locked in a long stalemate over auditing standards for Chinese companies listed on the U.S. market. The standoff has deepened as relations between the two countries have soured following a trade war and technology battle, with a number of Chinese companies listed in the United States at risk of delisting from the U.S. market, including the aforementioned Chinese e-commerce giant. giants.
Several Chinese state-owned companies have also been collectively delisted from the US stock market recently under such terms, including China Life Insurance and PetroChina.
China’s securities regulator announced at the end of August that it had reached an agreement on the dispute over the audit of listed companies, based on the principles of equality and reciprocity and in accordance with the laws of ‘others’.
But the deal does not fully address concerns among Chinese economists about the fate of Chinese companies located in the United States, given that the United States has used multiple methods to crack down on Chinese companies and industries.