• US Public Company Accounting Oversight Board would need to complete audit inspections by November 22 to meet 2023 delisting deadline
• SEC added over 80 Chinese firms to its provisional list of companies that face delisting in three years if they don’t grant access to accounting books
US Securities and Exchange Commission (SEC) on Tuesday said there are still “significant issues remain” in reaching a deal with Beijing over a long-running dispute around auditing compliance of Chinese companies listed on the Wall Street.
The SEC’s international affairs chief, YJ Fischer, told an audience that the agency’s accounting body, the US Public Company Accounting Oversight Board, would need to complete audit inspections by November 22 to meet Chinese companys’ 2023 delisting deadline, Reuters reported.
Earlier this month, the SEC added more than 80 Chinese firms to its provisional list of companies that face delisting in three years if they don’t grant US regulators access to their accounting books.
The additions include some of China’s most prominent tech firms, like e-commerce company JD.com, video game publisher NetEase, video platform Bilibili, agriculture-focused e-commerce platform Pinduoduo, and electric-car maker NIO.
Fischer added that Chinese authorities should consider delisting a “subset of issuers” from US exchanges if it deems “too sensitive to comply” with US rules.
Chinese ride-hailing company Didi Global Inc (NYSE: DIDI) on Monday said its shareholders approved the plan to delist from the New York Stock Exchange after facing a crackdown from the regulators in Beijing less than a year after the company listed its shares in the US.
Picture Credit: FT
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