US Regulators to start auditing compliance discussion with China on May 9

Written by Cláudio Afonso | | LinkedIn | Twitter

According to Reuters Agency, US regulatory officials have arrived in Beijing to discuss the auditing compliance of US listed Chinese firms, three people familiar with the matter told the agency. After the quarantine period, the PCAOB officials are expected to start the discussion with Chinese officials as soon as next week, a source told Reuters.

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.

“The talks between officials from the US Public Company Accounting Oversight Board (PCAOB) and their counterparts at the China Securities Regulatory Commission (CSRC) can be described as ‘late stage’ after China made concessions in recent months. If this visit proceeds as expected, the PCAOB is likely to send a bigger team to China later this year to conduct on-site inspections of local auditors, the person said” — the people told Reuters.

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.

Written by Cláudio Afonso | | LinkedIn | Twitter