Good Tidings For Alibaba And Other U.S.-listed Chinese Firms? Regulators Make Progress On Audit Inspection Talks To Avert Potential Delistings
What Happened: Regulatory agencies of China along with the Securities Exchange Commission in the U.S. are negotiating a cooperative method for audit supervision, China Securities Regulatory Commission said in a statement Saturday.
The CSRC also expressed confidence that the parties will be able to find a cooperative path that meets each other's regulatory needs, jointly protect the legitimate rights and interests of global investors, and promote the healthy development of the capital markets of the two countries.
Why It's Important: The CSRC has in the past promised to cooperate with the U.S. over how it supervises the auditing of Chinese companies, which could avert potential delisting of these firms from American exchanges.
The recent statement on the dialogue between the regulators of both nations suggests there could be a resolution to the stalemate over how to keep tabs on the auditors of publicly traded China-based companies here in the U.S.
Chinese companies listed in the U.S. such as $Alibaba(BABA.US$ , $Tencent(TCEHY.US$ and $JD.com(JD.US$ were already under pressure due to a clampdown by local regulators. They were reprimanded in the past over antitrust issues and misuse of user data.
Earlier this month, reports suggested China is looking to make it mandatory for companies listed in the U.S. and Hong Kong, through the variable entity route, to make their ownership structures more transparent to facilitate regulatory reviews, especially in sectors that are off limits to foreign investment.
These adverse regulatory headlines have hurt even Chinese EV makers listed in the U.S., including $NIO Inc(NIO.US$ and $XPeng(XPEV.US$ .
Indications that Chinese and U.S. regulators are ready to bury the hatchet, therefore, should come as a relief to these companies.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Video Sharer
news porter, welcome and respect all view~
1912Followers
33Following
5171Visitors
Follow
迎接虎年 : The Chinese government is unbelievable; they say there are too many examples to complete.
70193421 迎接虎年: Compared to the US government, the Chinese government is far better
PassiveIncome0723 迎接虎年: Chinese gov is doing for is valuable for long term investor.
Evelynne : Nicely up on chinese rate cut, then faded with the US futures selloff
102451500 迎接虎年: U are obviously ignorance of world affairs. Talking like a 3 years old
102922390 :
FiveHundredCentsOP 迎接虎年: Bro, your remarks are prejudiced...
迎接虎年 FiveHundredCentsOP: It's not prejudice brother, it's anger! It's disgusting!
迎接虎年 PassiveIncome0723: If this is the case, then why did all Chinese securities collapse like this?
迎接虎年 70193421: Any important decision made by the US government requires approval by both houses of the Senate and the House of Representatives; it is not a matter of a day or two. But it only took one night for the Chinese government to double reduce its policies.
View more comments...