US Securities and Exchange Commission chair Gary Gensler expressed doubts about reaching a deal to access the audit reports of Chinese companies, in an ongoing negotiation to prevent mass delistings.
«I’m not particularly confident – it’s really up to our counterparties,» said SEC chair Gary Gensler during a media conference call earlier this week on negotiations to ensure that the Public Company Accounting Oversight Board (PCAOB) can access the audit documents of Chinese firms trading in the US.
This is intended to prevent the delisting of about 200 Chinese stocks from New York exchanges, including e-commerce giants Alibaba and JD.com.
Although Gensler said that «good-faith» negotiations continued, he noted there was risk without specifying what was preventing an agreement from being reached.
Delisting Deadline
If China still refuses audit access, Chinese companies face delisting from the New York Stock Exchange and Nasdaq by 2024 and the deadline could be moved up if US lawmakers pass legislation before the end of the year.
«I think investors should be aware that Congress has spoken clearly,» Gensler said on PCAOB obtaining «complete» access to auditing papers.
