China says looks forward to talks on auditing U.S.-listed Chinese firms

Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon
FILE PHOTO: U.S. and Chinese flags are seen before Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon in Arlington, Virginia, U.S., November 9, 2018. REUTERS/Yuri Gripas

November 20, 2020

(Reuters) – China’s securities regulator said on Friday it looked forward to holding discussions with its U.S. counterparts as soon as possible on “specific plans” to audit Chinese firms listed in the United States.

The United States has long complained of lack of access to audit working papers for U.S.-listed Chinese companies and in August threatened measures to delist Chinese firms that fail to meet its auditing requirements, before Beijing proposed a trial joint inspection of any of its state-run firms.

“It is believed the two sides will adopt an open and professional attitude to reach a consensus on a joint inspection plan and … create a good regulatory environment for cross-border listed companies,” the China Securities Regulatory Commission said in a statement.

(Reporting by Tom Daly and Samuel Shen; editing by John Stonestreet)