Market speculation about a final agreement on accounting regulation between the PCAOB and the Chinese side is premature, local media said, citing a statement.
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US regulators appear to be taking a hard line, despite what appears to be a lot of effort by Chinese regulatory authorities.
Market speculation that the Public Company Accounting Oversight Board (PCAOB) and the Chinese side have reached a final agreement on accounting regulation is premature, Caixin said in a report today, citing a statement.
"While we, too, will continue to work to find practical solutions to address the Chinese side's concerns, ultimately, in order to fulfill our responsibilities on behalf of investors, we must fully examine the relevant audit documentation," the PCAOB statement said, adding, "This is non-negotiable, even for those issuers from sensitive industries."
A number of previous reports have hinted at positive developments in the US-China negotiations on audit papers.
On March 22, Reuters cited people familiar with the matter as saying that Chinese regulators have asked a number of companies, including Alibaba, Baidu and JD.com, to prepare for more audit disclosures.
That's because Chinese regulators are considering a proposal to allow their US counterparts to examine audit working papers of some Chinese companies that don't collect sensitive data, two of the sources said.
As part of that move, the China Securities Regulatory Commission (CSRC) and other regulators summoned top Internet companies, including Baidu and JD.com, earlier this month, the report said.
On March 17, local media Cailian said that top officials from US and Chinese securities regulators held working-level talks today to exchange views on possible paths to advance audit and regulatory cooperation.
The two sides plan to further strengthen communication and reach cooperation arrangements as soon as possible within a framework consistent with their respective laws, according to the report, which did not disclose further details.