China, US committed to reach agreement on audit inspection – CSRC

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The negotiations of Sino-US audit regulation were largely running smoothly and the two sides are committed to reach an agreement on the audit inspection issue that is in line with legal and regulatory requirements for both sides, said the China Securities Regulatory Commission (CSRC) on Wednesday.

The statement came after YJ Fischera, international affairs chief of the US Securities and Exchange Commission (SEC), said on Tuesday that “significant issues remain” in reaching a deal with China over a long-running dispute around auditing compliance of China-based companies listed on US stock exchanges.

Chinese authorities should consider delisting from US exchanges a “subset of issuers” that it deems “too sensitive to comply” with US rules, he said. “While there has certainly been progress in the discussions on audit inspections in China and Hong Kong, significant issues remain,” said Fischer. “Even if an agreement is signed between the PCAOB and Chinese authorities, it will only be a first step,” she said, since the United States would then need to commence on-the-ground inspections.