Chinese regulators are asking US listed Chinese companies to disclose audit
Software

Chinese regulators are asking US-listed Chinese companies to disclose audit information

Chinese regulators have asked some of the country’s US-listed companies, including Alibaba, Baidu and JD.com, to prepare for additional audit disclosures, Reuters reported, citing people familiar with the matter.

Credit: REUTERS/Aly Song

Credit: REUTERS/Aly Song

The move comes as Chinese regulators are considering a proposal to allow U.S. regulators to review audit working papers from some Chinese firms that don’t collect sensitive data, the sources say.

In this regard, earlier this month the China Securities Regulatory Commission (CSRC) and other regulators in the country requested leading internet companies to submit prepared audit documents for fiscal year 2021 in accordance with US regulators’ enhanced information disclosure requirements. In addition to Alibaba, Baidu, and JD.com, the list of companies required to provide additional data also includes Weibo Corp. In addition, regulators also met with representatives of online store Pinduoduo Inc and internet company NetEase Inc.

Companies are encouraged to seek advice from Chinese regulators if they are “uncertain” about conducting audits and communicating with US regulators, the source said.

The moves by Chinese regulators signal Beijing’s willingness to make some concessions to settle a long-running China-US audit dispute that has hundreds of billions of dollars in US investments in Chinese companies at stake.

US authorities can require Chinese companies to be delisted from US stock exchanges if they fail to submit documents for review for three consecutive years.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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