US regulators have warned that investor hopes that it was close to an agreement with Beijing that would allow audit inspections of US-listed Chinese companies and avert the delisting of $2tn of shares were “premature”.
The US Public Company Accounting Oversight Board on Thursday said it “remains unclear” whether Beijing will “permit and facilitate” access for its officials to inspect the audits of US-listed Chinese companies, as required by US law. The statement threatens to reverse gains made by US-listed Chinese equities over the past week.
In an email to the Financial Times, the regulator said negotiations were ongoing, but that “full access to relevant audit documentation” was “not negotiable” for the PCAOB.