China plans to revise confidentiality rules to avoid delisting of Chinese firms · TechNode

China plans to revise confidentiality rules to avoid delisting of Chinese firms · TechNode
On April 2, the China Securities Regulatory Commission (CSRC) proposed an amendment to the country’s security audit review requirements, potentially allowing foreign regulators to do an on-site audit on Chinese companies listed overseas. The Chinese security regulator said it will provide necessary assistance to those audits through a cross-border regulatory cooperation mechanism. This revision marked a major change in the country’s attitude towards sharing financial data of overseas-listed companies, changing the long-standing rules that on-site inspection has to be led by Chinese regulators. The change came as the US Securities Exchange Commission began in March to propose removing Chinese firms that failed to provide accounting access to US regulators for three consecutive years from the US stock market.

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