Landmark US-China audit deal spurs hunt for devils in the details

Different interpretations of the agreement between the two parties may prevent Chinese companies from being delisted in the US.

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After years of discussions, Beijing finally gave in to pressure in 2013 and permitted US regulators to review

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the auditing procedures of Chinese companies whose securities were traded in New York.

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The unprecedented achievement, however, was undone when Chinese regulators refused to cooperate with US inspectors who had been there to examine the audits of a big tech company.

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Nearly ten years later, US officials are hoping that a new agreement would result in a radically different outcome,

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as are hundreds of Chinese companies and international investors who own approximately $1.4 trillion of their shares.

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Beijing and Washington said last week that they had secured an agreement for US accounting officials to review audits conducted in China,

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potentially saving 200 Chinese businesses from being delisted from American exchanges.

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