Any agreement reached between China and the U.S. over the prolonged dispute will only be the first step.
A U.S. Securities and Exchange Commission (SEC) official said Tuesday that «significant issues remain» in reaching an agreement with China over the requirement for China-based companies listed in the U.S. to undergo full audit inspections, according to a «Reuters» report.
According to the news agency, the SEC's international affairs chief, YJ Fischer, indicated that the Public Company Accounting Oversight Board (PCAOB), a nonprofit institution established by the U.S. Congress to oversee independent audits of publicly listed companies, would need to complete China-related audit inspections by 22 November. That would be in order to meet a deadline that would force those companies that did not comply to delist by 2023.
Delisting Should be Considered
Fischer added that Chinese authorities should consider delisting a «subset of issuers» considered «too sensitive to comply» with American rules, Reuters reported.
She noted that «significant issues» remain.
«Even if an agreement is signed between the PCAOB and Chinese authorities, it will only be a first step,» she was reported as saying by the news service. Such an agreement would need to be followed by audits and inspections conducted directly on site, the report indicated.
