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China Removes Key Hurdle to Allow U.S. Full Access to Audits

  • CSRC eased rules on offshore listed firms’ data sharing
  • China, U.S. have been at odds on audit access for two decades
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WATCH: Beijing plans to remove a key hurdle for U.S. regulators to gain full access to auditing reports of the majority of the Chinese companies listed in New York. Candice Zachariahs reports.Source: Bloomberg
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China modified a decade-long rule that restricted offshore-listed firms’ financial data sharing practice, potentially removing a key hurdle for U.S. regulators to gain full access to auditing reports of the majority of the 200-plus Chinese companies listed in New York. 

The revised draft rules deleted the requirement that on-site inspections should be mainly conducted by Chinese regulatory agencies or rely on their inspection results, the China Securities Regulatory Commission said in a joint statement with other regulators Saturday. The CSRC will provide assistance during the process through a cross-border regulatory cooperation mechanism. Meanwhile, all companies listed directly or indirectly overseas will be responsible for properly managing confidential and sensitive information, and protecting national information security, according to the statement.