China is said to be preparing a plan in a bid to prevent Chinese companies from being delisted from US financial markets.
The strategy is to classify companies into groups based on the sensitivity of the data they hold, according to the Financial Times.
It is an attempt to bring companies into compliance with US rules that require public companies to allow regulators to examine their audit files.
The three categories will be divided according to non-sensitive data, those with sensitive data and those with “confidential” data, which will have to be crossed out.
the movement It will be a concession from Beijing To remove obstacles, and allow the United States full access to audits in April.
Prior to that, China amended a rule restricting data-sharing practices for offshore companies.
The plan comes after months of stalled talks between Beijing and Washington over the United States’ requirement for Chinese companies and their auditors to make detailed audit documents available or to write them off in 2024.
Delisting may include some large Chinese companies, including Alibaba Technology Group, Fast food company Yum China and social networking site Weibo.
The China Securities Regulatory Commission has not commented on the Financial Times.
What you need to know before investing in Chinese companies
US officials are skeptical that Chinese companies will meet the standards required under the Foreign Corporate Accountability Act of 2020, which requires both Chinese and foreign companies. Hong Kong companies to open their audit files.
“Extreme travel lover. Bacon fanatic. Troublemaker. Introvert. Passionate music fanatic.”
More Stories
FCC fines major US wireless carriers for selling customer location data – Krebs on Security
Elon Musk reaches deals in China on Tesla self-driving cars
ChatGPT's “hallucinations” issue has faced another privacy complaint in the EU