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News Summary: Chinese units of 5 US firms charged

The Associated Press

CHINESE AFFILIATES CHARGED: Federal regulators have charged the Chinese affiliates of five of the biggest U.S. accounting firms with impeding the government's investigation of Chinese companies by refusing to turn over documents.

BIG FOUR PLUS ONE: The Securities and Exchange Commission has started proceedings against the Chinese affiliates of all so-called Big Four accounting firms — Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers — and a fifth major firm, BDO.

TRADING IN THE U.S.: Hundreds of Chinese companies trade on U.S. stock exchanges. The SEC has been investigating many of them for possible accounting fraud. The Chinese affiliates of the accounting firms, which are subject to Chinese law, say they cannot hand over the documents because the Chinese government won't allow them to do so.