(Hong Kong / Beijing Electric) sources revealed that China is studying how to classify Chinese -funded enterprises listed in the United States based on the sensitivity of data owned to formulate strategies to avoid delisting in accordance with the requirements of US regulators.
The British Financial Times quoted people familiar with the matter that China is studying how to classify Chinese companies listed in the United States based on data sensitivity.These companies will be divided into three categories: those with unsightly data, sensitive data, and confidential data need to be delisted.The plan is under discussion and may change.
The United States requires the audit of all listed companies. It must be inspected by the accounting supervision of the U.S. listed company (PCAOB), otherwise these companies will be eliminated from the New York Stock Exchange and the Nasdaq stock market.
The United States and China have been different in terms of legal requirements for 20 years. This requirement is designed to protect investors from the impact of accounting fraud and other financial violations.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), revealed in an interview on the 19th that it is unclear whether China -US regulatory officials can reach an agreement or whether Chinese enterprises are delisted.The audit department checks the authority of the bottom manuscript.The negotiations between the two sides are "constructive".
Reuters and Bloomberg quoted sources in March and April that Chinese regulators are considering a proposal that for some Chinese companies that do not collect sensitive data, they can allow US regulators to check audit work documents.As part of this measure, regulators have required some companies including Alibaba, Baidu, and JD.com to prepare more audit information.
