Edited and translated by People's Daily Online
U.S. Democratic Senator Charles Schumer recently sent a letter to the Public Company Accounting Oversight Board, calling on the primary U.S. auditing watchdog to suspend or revoke its registration of Chinese auditing firms that refuse to submit to U.S. inspections.
Analysts noted that Schumer's proposal, if adopted, would preclude Chinese auditing firms from preparing or issuing any audit reports on U.S.-listed companies and escalate the already intense dispute between China and the United States over joint inspections of auditing firms.
Barring Chinese auditors from U.S. market
Since the beginning of the year, many U.S.-listed Chinese companies have experienced malicious short-selling by certain U.S. institutions and have been suspended from trading or even de-listed for alleged falsification of financial statements or violation of information disclosure and trading rules. Most of these companies were audited by Chinese auditing firms, which caught the attention of the oversight board.
"If the U.S. regulator really adopted the proposal, Chinese auditing firms might be barred from the U.S. market," said Dong Dengxin, a finance professor at Wuhan University of Science and Technology.
However, it will not affect the overseas listing of China concept stocks because good companies can always stand the test of independent auditing, Dong said.
Mahjong body stakes claim to heritage list
Sina Microblog
Tencent Microblog
Feedback
RSS
