China Warns U.S. of Consequences After SEC Bans Accounting Firms

China warned the U.S. of “consequences” after the Securities & Exchange Commission barred the four largest accounting firms from conducting audits of U.S.-listed Chinese companies.

The decision to ban the Chinese affiliates of the accounting firms for six months “ignored” China’s efforts and progress made on cross-border regulatory cooperation, the China Securities Regulatory Commission said. Chinese stocks traded in New York fell to a two-month low yesterday as the ruling sparked concern that the companies won’t be able to put together their 2013 earnings reports in time to meet U.S. listing requirements.