The Strategist

US watchdogs to audit Alibaba and other Chinese companies

08/31/2022 - 09:52

U.S. regulators will examine Alibaba and other Chinese businesses, according to Reuters, which cited three persons with knowledge of the situation.

hinglish Notes
hinglish Notes
The China Securities Regulatory Commission (CSRC) and the Chinese Finance Ministry inked a collaboration agreement with the American Public Company Accounting Oversight Board (PCAOB) on Friday, according to news reports.

According to sources who spoke with Reuters, Alibaba has been informed that it is one of the first Chinese companies whose audits would be examined in Hong Kong by the Public Company Accounting Oversight Board (PCAOB), the U.S. auditing body.

The agency said the audits will start in September. According to sources cited by Reuters in May, representatives from the U.S. auditing regulator had come in Beijing to resolve a long-running disagreement over Chinese companies' audit compliance. According to the agency, if the conflict is not settled, Chinese companies may be compelled to leave American exchanges.