Chinese NYSE delistings to pave way for audit deal with US: analysts
The move to delist five Chinese state-owned enterprises (SOEs) from the New York Stock Exchange (NYSE) could pave the way for Beijing to strike an audit deal with the United States, ending a more than decade-old dispute, analysts and advisers said on Monday.
The five SOEs including oil major Sinopec (600028.SS) and China Life Insurance (601628.SS), whose audits have been under scrutiny by the U.S. securities regulator, said on Friday they would voluntarily delist from the NYSE.
The US Securities and Exchange Commission (SEC) had in May flagged the five and many others as failing to meet US auditing standards, and the delisting signals China could compromise on allowing US auditors to access the accounts of private Chinese companies listed in the United States, some analysts said.
Comments