US regulators can see audited financial statements of Chinese companies listed in US, as per new agreement between US and China

1 Sep 2022 , 12:18 PM

Among other U.S.-listed Chinese companies, US regulators have chosen e-commerce giants JD.com Inc. and Alibaba Group Holding Ltd. for audit investigations beginning next month.

The choice comes as Beijing and Washington struck a historic audit agreement on Friday that lets US authorities inspect the accounts of firms in Hong Kong and the PRC. This might put an end to a protracted battle that had threatened to bar more than 200 Chinese companies from US stock exchanges.

The tech duo and Yum China Holdings Inc., owner of KFC, Taco Bell, and Pizza Hut restaurants in China, have been informed that they are among the first batch of Chinese companies whose audits will be examined in Hong Kong by the Public Company Accounting Oversight Board (PCAOB), a U.S. audit watchdog.