China-U.S. Audit Deal A Boost To Capital Market

The audit deal reached by Beijing and Washington has boosted market confidence and reflected China’s determination to deepen the opening of its capital market, the Securities Times reported. The deal could prevent Chinese companies being removed from American stock exchanges due to the lack of cross-border audit supervision cooperation, while companies must abide by domestic information security laws when asked to provide personal privacy and national security related information to accountancy firms. As of Aug 27, there were 286 Chinese companies listed in the U.S., with a total market value of USD1.18 trillion, and there are more than 30 domestic accounting firms registered with PCAOB which are qualified to provide audit services, the newspaper said.