BloombergChina modified a decade-long rule that restricted offshore-listed firms' financial data sharing practices, potentially removing a key hurdle for US regulators to gain full access to auditing reports of the majority of the 200-plus Chinese companies listed in New York. The revised draft rules deleted the requirement that on-site inspections should be mainly conducted by Chinese regulatory agencies or rely on their inspection results, the China Securities Regulatory Commission said in a joint statement with other regulators Saturday. The CSRC will provide assistance during the process through a cross-border regulatory cooperation mechanism. Meanwhile, all companies listed directly or indirectly overseas will be responsible for properly managing confidential and sensitive information and protecting national information security, according to the statement. The revisions, pending public feedback until April 17, show "China has always been open to cross-border audit cooperation," the CSRC said in a Q&A statement, adding that the move will provide support for "safe and efficient" cross-border cooperation including joint inspections.

Source: The Standard April 04, 2022 04:36 UTC