China supports auditing investigation via cross-border cooperation: official

Source: Global Times Published: 2020/11/21 0:49:35

People walk outside the headquarters of the China Securities Regulatory Commission in Beijing. File photo: VCG

China always supports carrying out auditing investigation via a cross-border cooperation mechanism, an official with the China Securities Regulatory Commission (CSRC) said on Friday, responding to media reports that the country prevents auditors from providing information to overseas regulatory bodies.

The US Securities and Exchange Commission (SEC) is allegedly pushing forward a plan that could lead to some Chinese companies being delisted from US stock exchanges. 

Under the reported SEC plan, Chinese companies listed in the US would be required to hire auditors who are overseen by US regulators. Otherwise, the Chinese companies may lose their listings in the US, the Wall Street Journal reported. 

All of the Chinese companies listed in the US comply with US laws and regulations by compiling financial reports and disclosing information, the official said in a statement posted on the CSRC's website.

"That US regulatory bodies can't investigate Chinese accounting firms providing auditing services for Chinese companies getting listed in the US is a problem of cross-border supervision cooperation and it doesn't mean that Chinese companies don't comply with relevant US laws and regulations," the official said.

As for China-US auditing supervision cooperation, the Chinese side's constant stance is to carry out accounting investigation based on a cross-border supervision cooperation mechanism, the official said.

In response to the US request, China's regulatory body sent the fourth version of the "co-audit" plan to the Public Company Accounting Oversight Board in August 2020, which confirmed it received the document and said that it would actively study the plan, the official pointed out.

"We hope the US regulatory institution can conduct negotiations with us as early as possible," the official said, noting that it's believed that the two sides could reach a consensus on the plan if both sides maintain an open and professional attitude.

China has never prevented its accounting firms from providing audit working papers to foreign regulatory bodies, and it has always aimed at creating a favorable environment for orderly and sound operation of the global capital markets, Chinese Foreign Ministry spokesperson Zhao Lijian said at a press conference on Wednesday.

Global Times

Posted in: POLITICS

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