China plans three-tier data strategy to avoid U.S delistings – FT
(Reuters) – China plans to kind U.S.-listed Chinese language corporations primarily based on the sensitivity of the info they maintain in an try and cease U.S. regulators from delisting lots of of companies, the Monetary Occasions stated on Saturday.
The three-tier system goals to convey Chinese language corporations into compliance with U.S. guidelines that will require public corporations to let regulators examine their audit information, the FT stated, citing 4 unnamed individuals with data of the scenario.
The three broad classes embrace corporations with non-sensitive information, delicate information and secretive information, the newspaper stated.
Reuters couldn’t instantly attain the CSRC for remark throughout non-business hours on Sunday.
Washington has lengthy demanded full entry to the books of U.S.-listed Chinese language corporations, however Beijing, citing nationwide safety considerations, bars international inspection of working papers from native accounting companies.
Reuters reported in March that Chinese language regulators had requested a few of the nation’s U.S.-listed companies, together with Alibaba Group Holding Ltd, Baidu Inc and JD.com Inc to arrange for extra audit disclosure.
In April, Reuters reported China and U.S. regulators had been discussing operational particulars of an audit deal that Beijing hoped to signal this 12 months to maintain Chinese language corporations listed on U.S. exchanges.
(Reporting by Sneha Bhowmik in Bengaluru; Enhancing by William Mallard and Christopher Cushing)
