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PCAOB denies that US Regulators are in China to discuss US-listed firms auditing compliance

Written by Cláudio Afonso | | LinkedIn | Twitter

On Friday, Reuters Agency reported that US Regulators had arrived Beijing (China) in order to meet with Chinese Authorities to discuss US-listed firms regarding the auditing compliance. Citing three people familiar with the matter, the Agency said that the PCAOB officials were expected to start the discussion as soon as next week, after the quarantine period. PCAOB spokesperson added that “speculation about a final agreement remains premature.”

On Friday evening, PCAOB spokesperson told Reuters, “Recent reports that PCAOB officials are currently in China, or that PCAOB officials were in China earlier this year to conduct face-to-face negotiations, are untrue. The PCAOB has not sent any personnel to China since 2017.” He said the board continues to engage with the Chinese authorities but “speculation about a final agreement remains premature.” As a result, the PCAOB is planning “for various scenarios”.

On Wednesday evening, US SEC updated the Holding Foreign Companies Accountable Act (HFCAA) list adding NIO, XPeng and 80 other Chinese companies. According to the law approved in late 2020, the companies on the list used an auditor “whose working paper cannot be inspected or investigated completely by the PCAOB”. Previously, on April 22, also the Chinese automaker LI Auto was added to the HFCAA list.

NIO officially answered that has been “actively exploring possible solutions to protect the interest of its stakeholders”. The EV maker also continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both the NYSE and the HKEX in compliance with applicable listing rules”. XPeng had not officially responded to the matter.

Written by Cláudio Afonso | | LinkedIn | Twitter