Caixin on SEC/PCAOB | China Accounting Blog | Paul Gillis

Caixin on SEC/PCAOB

Caixin has an extensive story (in Chinese) about the SEC/PCAOB issues with China. The story is largely consistent with Western accounts, but includes some reaction from local regulators. I have posted a translation here.

The picture that is painted illustrates that U.S. and Chinese regulators are looking at the situation differently. Both appear to be pursuing a situation based on the rule of law, but there are conflicting laws. China wants the U.S. to allow it to conduct and control all investigations in China, which is unacceptable to U.S. regulators. 

Near the end of the article it is reported that some CSRC officials privately admit that part of the problem is that the use of offshore parent companies by the China concept stocks has created a loophole. That is the point I have been making in my recent editorials. Closing this loophole is the best way to resolve this situation. 

Copyright ©  2020         Paul L. Gillis all rights reserved