China ready to hand over audit documents to U.S. regulators Reuters
SHANGHAI/NEW YORK (Reuters) - China's securities watchdog said it is ready to turn over audit documents of a Chinese company listed in the United States to U.S. regulators, signaling a second breakthrough in a two-year international dispute over accounting scandals.
The U.S. Securities and Exchange Commission (SEC) has been struggling to get papers out of China to investigate possible accounting fraud at dozens of Chinese companies listed on U.S. stock exchanges. China, for years, has resisted turning over documents because of state secrets and sovereignty concerns.
The China Securities Regulatory Commission (CSRC) is now ready to transfer audit papers to the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), a CSRC spokesman said, confirming local media reports. He did not identify the company whose audit documents the CSRC is turning over, or say when the handover will take place.
The gesture indicates China's willingness to improve cross-border regulatory co-operation with the United States, coinciding with high-level bilateral economic talks in Washington. It could also help restore confidence in U.S.-listed Chinese companies and make it easier for firms in China to start tapping American capital markets again.