The Chinese securities regulator said the country would implement the audit agreement reached between the Biden Administration and Xi Jinping’s government last week.
What Happened: Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), told a forum that China will strengthen communication with foreign investors, Reuters reported.
”We will implement well the Sino-U.S. cooperative agreement on cross-border audit supervision, and will continue to strengthen communication with overseas institutional investors,” Fang said.
This came after the two top world economies signed a pact last week allowing American accounting officials to visit Hong Kong to review the audit records of Chinese companies listed on U.S. exchanges.
The deal came as a relief for U.S.-listed Chinese companies, investors, and exchanges. Earlier, the dispute could have resulted in a ban of 200-Chinese companies from the U.S. exchanges. The U.S. Securities and Exchange Commission (SEC) had previously identified around 200 companies at risk, including Alibaba Group Holdings BABA, JD.Com Inc JD, and Nio Inc NIO.
Meanwhile, legal experts and analysts remain skeptical and have warned that the two sides could still clash over how the accord is interpreted and implemented.
“My instinct is that now that China indicated that they want to avoid a mass delisting, that things will work out in the end,” Drew Bernstein, co-chairman of Marcum Asia CPAs LLP, told the publication.
“But expect some bumps in the road and barrels of midnight oil being burned before they get there,” he added.
Image and article originally from www.benzinga.com. Read the original article here.