The U.S. Audit Stocks, the first choice of the Internet

According to the agreement reached by China and the United States at the end of August, the China Securities Regulatory Commission will arrange for Chinese companies and their accounting firms listed in the United States to transfer their audit drafts and other data from the Mainland to Hong Kong. examine. The "Foreign Company's Accountability Law" issued by the United States at the end of 2020 stipulates that if the Chinese stocks listed in the United States have not been submitted to the US Public Company Accounting Supervision Committee (PCAOB) for three consecutive years, the US Securities and Exchange Commission (SEC) It has the right to deliver it from the US exchange. So far, more than 160 Chinese companies have been identified by the SEC that they have not complied with the US audit rules, including Chinese Internet giants Alibaba, JD.com and Pinduoduo. According to the US Securities Regulatory Commission website, on September 14, another Chinese stock company was included in the "pre -delivery" list. The cooperation between China and the United States in the audit supervision is considered an important turnaround in China that listed in the United States.

The first batch of Internet giants

According to the US "Wall Street Journal" report on the 16th, the chairman of the SEC Garry Garller disclosed that PCAOB staff is expected to start inspection on September 19th's audit draft in the U.S. stock market. Genler said at the Senate Banking Committee hearing that the entire process would take 8 to 10 weeks, or the inspection results were obtained in early December 2022. He also said that the Chinese regulatory agency stated that it would abide by the agreement.

Hong Kong's "South China Morning Post" said in a report on the 15th that staff from PCAOB will arrive soon. Sources also revealed that before these staff members started the audit inspection, they needed to carry out a three -day hotel quarantine in accordance with the regulations of Hong Kong and the subsequent 4 Heavenly House medical monitoring. As of the release of the Global Times on the 18th, there was no news that PCAOB's staff had arrived in Hong Kong.

"Nanhua Morning Post" reported on the 15th that two of the world's four major accounting firms: Pricewater -Yongdao and KPMG have received notifications, PCAOB has chosen them to several audit customers (China Stock Company) checking. And the two companies have prepared the paper and electronic version of the audit materials to be provided. Sources also revealed that all audit records have been archived in accordance with the standard of PCAOB, and the auditors have also prepared to accept interviews at the request of PCAOB. The other two global four major conference divisions Deloitte and Ernst & Young have not received PCAOB notifications, but they are expected to receive invitations soon.

According to previous foreign media reports, the US regulators have selected Alibaba, Netease, Baidu, JD.com, and Yum!

On the evening of August 26, the China Securities Regulatory Commission and the Ministry of Finance formally announced the signing of audit supervision and cooperation agreement with PCAOB, and clearly launched related cooperation in the near future. According to a statement issued by the US Securities Regulatory Commission on the same day, PCAOB staff will work in Hong Kong in mid -September.

According to PCAOB data, the above four major accounting firms provided audit services for more than 130 of mainland Chinese companies listed in the United States, accounting for more than 78%of the total. As of June, a total of about 168 Chinese companies listed in the United States have accepted 15 audits from Hong Kong and Mainland accounting registered in PCAOB. The total market value of these companies has reached $ 1.5 trillion. If these companies do not allow PCAOB to review their audit records for three consecutive years, they will be removed by the US Exchange according to the "Foreign Company Accountability Law".

The probability of the delisting of Chinese stocks decreases

In the news released on the evening of August 26, the China Securities Regulatory Commission pointed out that the next step in China and the United States will carry out daily inspections and investigation activities on cooperation with relevant accounting firms in accordance with the cooperation agreement, and make objective assessments of the cooperation effects. If subsequent cooperation can meet their respective regulatory needs, it is expected to solve the problem of Chinese stock audit supervision, thereby avoiding passively retreat from the United States.

After China and the United States reached an agreement, Goldman Sachs believed that the probability of being forced to delist from the United States from 95%in March to 50%. If the risk of delisting is completely eliminated, it may drive the price -earnings ratio of China stocks to increase the price -earnings ratio of 11%by 11%. Essence The Wall Street Journal believes that this agreement reached after the 10 -year confrontation between China and the United States' regulatory agencies has opened up a road to avoid about 200 Chinese companies from being forced to delist from the US Stock Exchange in early 2024.

The South China Morning Post reported that Drubernistan, co -chairman of Maikai Asian Accounting Firm, which is headquartered in New York, said that if the first round of audit inspections in Hong Kong will be carried out smoothly, more Chinese companies should be encouraged to be in The United States seeks listing. He said: "I believe we will see a large number of Chinese companies enter the market in 2023."

Chinese stocks are the common interests of China and the United States

Dong Shaopeng, a senior researcher at the National People's Congress Chongyang Financial Research Institute, told a reporter from the Global Times on the 18th that the news currently revealed that PCAOB is obviously prepared for the upcoming inspection work, and China will also follow the agreement reached by the two parties last month last month. , Support and cooperate under the principles of peer and mutual benefit.

Dong Shaopeng believes that PCAOB may organize some experienced staff, or focus on checking some companies, or conduct spot checks on some Chinese stocks. There is a common interest in China and the United States to go public in China and the United States. I hope that the PCAOB inspection will comply with the agreement reached between the two parties and abide by the Chinese laws and regulations. However, Dong Shaopeng also believes that the confrontation of the United States is more serious. I hope that the inspection of the American PCAOB will adhere to the principles of cooperation and abide by the laws of both parties to protect investors as the starting point and serve the market fairly. factor. Because the United States has continuously put pressure on Chinese companies in the capital market for a period of time, many Chinese stocks have been realized or are seeking to be listed or doubled in Hong Kong to gradually get rid of their dependence on the US capital market. Some large state -owned enterprises delisted from the United States because of a small transaction volume. On the evening of August 12, China Life, Sinopec, China Petroleum, China Aluminum, and Shanghai Petrochemical issued an announcement, which plans to deliver US deposit shares from the New York Stock Exchange. Prior to this, China's three major operators had delisted from the United States. The market believes that China Stock Request has become a trend in Hong Kong, as an international financial center, and some large state -owned enterprises from the United States can also avoid possible data security risks.

Data from market institutions show that as of August, the total fundraising amount of IPO channels in the United States this year was only $ 5.1 billion, which was far lower than the same period of about $ 33 billion in the past 20 years. In the first half of 2021, a total of 37 Chinese stock stocks were in the US stock IPO, while only 3 in the same period in 2022. ▲

Reporter Ni Hao

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