China to hand over audit documents to US regulators

By IVCPOST Staff Reporter

Jul 10, 2013 08:28 AM EDT

A second breakthrough in a two year international dispute over accounting scandal was made. This was after China's securities watchdog announced handing over of audit documents of a Chinese firms listed in the US to regulators.

The US Securities and Exchange Commission (SEC) struggled to get papers out of China. The said documents would be used to probe possible accounting fraud at dozens of companies from China listed in the US stock exchanges. For years, China resisted handing of documents because of state secrets and sovereignty concerns.

The China Securities Regulatory Commission (CSRC) announced that it would transfer audit papers to the US Securities and Exchange Commission. China would also hand over the said documents to the Public Company Accounting Oversight Board (PCAOB) said a CSRC spokesperson. The representative from the CSRC confirmed local reports of giving audit papers to the US SEC. The gesture indicated China's willingness to improve cross boarder regulatory co-operation with the United States.

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