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Washington and Beijing are nearing an agreement that would allow American accounting regulators to travel to Hong Kong to inspect audit records of US-listed Chinese companies, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Securities regulators in Beijing are making arrangements for Chinese companies listed in New York and their accounting firms to transfer audit working papers and other data from China to Hong Kong, the report said.
Regulators from the US Public Company Accounting Oversight Board (PCAOB) would travel to Hong Kong to perform on-site inspections.
The two countries are in talks to resolve a long-running audit dispute which could result in US-listed Chinese companies being banned from American stock exchanges if Beijing does not comply with Washington's demand for complete access to the books.
Beijing bars foreign inspection of audit documents from local accounting firms, citing national security concerns.
Earlier in August, five US-listed Chinese state-owned companies whose audits are under scrutiny by US regulators said they would voluntarily delist from the New York Stock Exchange.
Picture Credit: Taiwan News
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