Three Chinese corporate giants are leaving the New York Stock Exchange - or are they?

[Emily]

https://www.marketwatch.com/story/th...ge-01660305838
Associated Press

Three Chinese corporate giants are leaving the New York Stock Exchange

Published: Aug. 12, 2022 at 8:03 a.m. ET
By Associated Press

Three state-owned Chinese corporate giants announced plans Friday to remove their shares from the New York Stock Exchange, adding to a growing financial separation between the biggest global economies in the midst of a dispute over scrutiny of company audits.

PetroChina Ltd. PCCYF, +1.90%, China Life Insurance Ltd LFC, -0.97%. and China Petroleum & Chemical Co SNP, -0.20% SHI, +1.55%. made no mention of the auditing dispute or U.S.-Chinese tensions over Taiwan, security, technology and human rights...

 

[sharon sanders]

bump this

 

[Emily]

https://finance.yahoo.com/news/tech-stocks-jump-hong-kong-095712466.html


Chinese Stocks May Extend Gains as Delistings Talks Progress

Matt Turner and Abhishek Vishnoi
Thu, August 25, 2022 at 8:37 PM

(Bloomberg) -- Chinese equities may extend gains on Friday after news that regulators were progressing in talks to avoid the delisting of companies in New York gathered momentum.

The Nasdaq Golden Dragon China Index jumped 6.3% overnight, the most since June, with shares of Alibaba Group Holding Ltd. and JD.com Inc. both gaining at least 8%. China regulators have instructed major accounting firms to prepare to bring audit work papers of US-listed Chinese companies to Hong Kong, where they can be reviewed by US officials, according to a person familiar.

Congress imposed a 2024 deadline for kicking off businesses that don’t comply with US exchange listing rules and investors have remained wary over the fate of the more than 200 Chinese firms with American Depositary Receipts. The conversations, which remain ongoing, may result in a positive step forward in the years-long standoff.

“This is a fascinating development,” said Ed Moya, senior market analyst at Oanda Corp. “An official confirmation is needed but expectations were growing that this would get done as both countries are dealing with economic fragility,” he added...

 

[Emily]

https://www.marketwatch.com/story/u...e-prospects-of-these-three-stocks-11661682894
Opinion: U.S.-China relations just got a whole lot better, boosting the prospects of these three stocks

Published: Aug. 28, 2022 at 6:34 a.m. ET
By Michael Brush

Securities regulators in the two countries came to an agreement on audit protocols, lifting an overhang on Chinese stocks
If you are laser-focused on inflation and the Federal Reserve’s policy, you might have missed a key breakthrough in U.S.-China relations that will boost U.S.-listed China stocks over the next six months.
...

The ghost of Enron


Years ago, after the tech bubble blew up in 2000, U.S. auditing firms came under heavy fire for not reporting publicly on the accounting shenanigans that cost investors tons of money — including at the meltdown poster child of the era, Enron. In response, Congress set up an auditor of auditors known as the Public Company Accounting Oversight Board (PCAOB).

China’s government never gave U.S. inspectors a peek at the books of Chinese businesses, for fear of revealing state secrets at its big state-run companies. A few years ago, Congress said enough is enough and passed a law saying Chinese companies will get kicked off U.S. exchanges if they don’t play along soon.

A standoff ensued, which just ended Aug. 26 when the China Securities Regulatory Commission and the U.S. Securities and Exchange Commission (SEC) agreed on audit protocols.
...

“I always believed they would reach an agreement because it is not in China’s interest to lose access to the world’s largest financial market,” says Loncar.

But the devil is in the details. So it remains to be seen how much cooperation U.S. regulators get later this year when they try to carry out inspections...

 

[Emily]

Gary Gensler, SEC chair, is interviewed in a video in the article. He said the proof will be in the pudding.

https://www.msn.com/en-us/money/mar...from-delisting-what-to-watch-next/ar-AA11sXNO

The U.S. and China are one step closer to preventing stocks like Alibaba from delisting. What to watch next


Evelyn Cheng - 3h ago

• The U.S. Public Company Accounting Oversight Board said its inspectors are set to arrive in Hong Kong in mid-September, shortly after which "all audit work papers requested by the PCAOB must be made available to them."
• What needs to happen next is a smooth on-ground inspection in China by the U.S., and adequate support from the Chinese authorities, analysts said.
• However, there's uncertainty around implementation, analysts said.

...
However, there's uncertainty around implementation of the agreement as it only established a framework, analysts said.

"Our accounting firms still don't know how to proceed," said Peter Tsui, president of the Hong Kong-based Association of Chinese Internal Auditors. That's according to a CNBC translation of his Mandarin-language remarks Thursday.

He said questions remain over what information the firms should share in order to remain compliant with Chinese regulation.

"Give [us] some guidelines," Tsui said.

Tsui said the inspections should go smoothly if it's just a matter of accountants on both sides, and there is no political interference on the U.S. side. He said the big four accounting firms — KPMG, PwC, Deloitte and EY — are members of the association.

China's Ministry of Finance has yet to release a public statement on the audit cooperation agreement. The ministry did not immediately respond to a CNBC request for comment...