Cina plans to type US-listed Chinese businesses based on the sensitivity from the data they hold in an attempt to stop US regulators from delisting hundreds of firms, groupings, the Financial Times said on Saturday (Jul 23).
The three-tier system aims to create Chinese companies straight into compliance with US guidelines that would require community companies to allow regulators inspect their particular audit files, the FT said, citing four unnamed people with knowledge of the situation.
The three broad classes include companies with non-sensitive data, delicate data and deceptive data, the paper said.
Wa has long demanded complete access to the books of US-listed Chinese companies, yet Beijing, citing national security concerns, bars foreign inspection associated with working papers from local accounting companies.
Reuters documented in March that will Chinese regulators acquired asked some of the country’s US-listed firms, which includes Alibaba, Baidu and JD. com, to organize for more audit disclosures.
In April, Reuters reported China and US government bodies were discussing functional details of an review deal that Beijing hoped to indication this year to keep Chinese companies listed upon US exchanges.