Chinese regulator welcomes positive PCAOB report, vows ‘audit oversight cooperation with our US counterparts in years to come’
- Exercise underscores the importance of Hong Kong, where PCAOB spent about seven weeks going through documents and interviewing accountants
- The market reaction was subdued on Friday, as investors had largely expected the outcome
China welcomed an overnight report by US regulators that said they were able to review the audit documents of Chinese companies trading on American exchanges, putting to rest a major dispute that had put the likes of Alibaba Group Holding and Baidu on the verge of delisting.
“The CSRC welcomes the PCAOB’s decision to vacate its previous determinations based on professional and regulatory considerations,” the Chinese regulator said.
“We look forward to building on previous experience and carrying out audit oversight cooperation with our US counterparts in the years to come with enhanced mutual respect and trust, thus establishing long-term and sustainable cooperation arrangements that will enhance the stability and predictability of [the] international regulatory environment and better protect global investors.”