China and the SEC | China Accounting Blog | Paul Gillis

China and the SEC

There has been considerable noise coming from the SEC recently about China.  Emily Chasan has an excellent article over at the China Realtime Report summarizing what has been going on.  The article states that since March 2011 24 U.S. listed Chinese companies have reported accounting problems, resignation of their auditors, or both.   Particularly amusing is how the SEC is confronting companies about whether they are really ready for a U.S. listing and apparently talking some out of it.  SEC Chief Accountant Wayne Carnell said "As a result of these questions, we have seen some registrants elect to deregister, to go home, and basically delist from the U.S."

Representative Patrick McHenry of the House Subcommittee on TARP, Financial Services and Bailouts. The letter outlines the steps the SEC is taking to protect investors in U.S. listed Chinese companies.  It is worth a read if you follow this space.   

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