August 27, 2022

China and the US have reached a long-stalled agreement on the year-long audit dispute for listed companies, based on the principles of equality and reciprocity and abiding by each other's laws, the Chinese securities regulator announced on Friday, marking a significant breakthrough in bilateral auditing cooperation that partially helps to clear delisting clouds hanging over 280 Chinese companies listed in the US.

Some investors hailed the preliminary agreement as a partial reconciliation between the Chinese and US sides and a thaw in downward spiraling bilateral relations. Such optimistic sentiment was reflected by a bull run for US-listed Chinese companies at the opening of the Friday trading session in the US.

But some Chinese observers also warned that the deal does not equate to a "once-for-all" antidote, given the deep political undertone of the US audit law that specially targets China, and Washington's maximum pressure approach to keep putting Chinese firms on a list of potential bans since the end of last year. 

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https://www.globaltimes.cn/page/202208/1273973.shtml