Since the late 2000s, Chinese and US authorities have clashed over how US-listed Chinese companies are audited. The Public Company Accounting Oversight Board (PCAOB), the US audit watchdog, has been denied access to Chinese firms' auditing work papers, undermining its mandate to support the credibility of US capital markets. Last month, the PCAOB announced an agreement with its Chinese counterparts at the Ministry of Finance and the China Securities Regulatory Commission to end the stalemate.
Will the deal provide an effective resolution and keep Chinese firms on US exchanges? What role will the Chinese government play in the inspection process? And what does it mean for the future of US-China financial relations?
Joining this episode of Financial Statements were:
Senior Fellow, Peterson Institute for International Economics (PIIE)
About This Series
Financial Statements is a biweekly virtual event series hosted by Nicolas Véron that explores changes in the world of finance, encompassing themes of financial services regulation, corporate finance and governance, systemic fragility and crises, and structural changes driving business and policy trends in the financial sector.