China’s securities regulator over the weekend released a document soliciting comment on proposed revisions to a rule that would allow auditors of Chinese companies to share their reports with the US Securities and Exchange Commission, reports Trading U. The release of this document followed numerous reports in Chinese and non-Chinese media that an agreement between the China Securities Regulatory Commission and the SEC was nearing.
The US and China have been at odds over the issue of information sharing for the past two decades. The US Securities and Exchange Commission says it needs access to audit records of all companies trading in New York so it can investigate if it suspects financial irregularities. But China bans such access on the grounds that such audit records are “state secrets.” Read more.
