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China, US discuss reopening of revision agreement – sources – SABC News

Chinese and US regulators are discussing operational information on a review agreement that Beijing hopes to sign this year, said sources familiar with the matter, in the latest move to try to keep Chinese companies listed on US stock exchanges.

An interim framework for auditing cooperation has been developed, as China is likely to classify less information as confidential, which could potentially allow more information into corporate audit work documents, a source told Reuters.

China is also discussing on-the-spot inspections by the PCAOB, which gives the U.S. Audit Office access to such documents, three sources said.

Last week, Fang Xinghai, vice chairman of the Chinese Securities and Exchange Commission (CSRC), said he expected an agreement in the near future that would allow the PCAOB to conduct on-the-spot audits.

In a long-running audit dispute between China and the United States, the PCAOB requires full access to the audit documents of Chinese companies registered in New York, which are stored in China.

The request has so far been rejected by China for national security reasons – a stagnation that could force about 270 companies to delist from US stock exchanges by 2024, according to US regulators.

“China will make a clear classification regarding disclosure and will probably narrow the scope of key confidential information,” said one source.

China hopes to reach an agreement this year and implement it next year, said another.

The CSRC referred to official information from Chinese and US regulators when responding to a question from Reuters on Friday.

On April 2, China released a draft of confidentiality rules that could potentially give US regulators access to Chinese companies’ working documents. At the same time, the rules impose obligations on Chinese companies to protect state secrets.

China, US discuss reopening of revision agreement – sources – SABC News

Source link China, US discuss reopening of revision agreement – sources – SABC News

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