SEC’s Gensler Casts Doubt on Prospects for China Audit Deal
WASHINGTON—Securities and Exchange Commission Chairman Gary Gensler expressed doubt Wednesday that negotiators in Washington and Beijing will reach an agreement over audits that is necessary to prevent Chinese companies from being delisted from U.S. stock exchanges.
Talks between the two countries had intensified in recent months ahead of a looming deadline for American regulators to oversee Chinese companies’ audit papers as required under U.S. law. Chinese authorities had become vocal in recent months about their desire to avoid the delisting consequence of missing the deadline, which was imposed by the U.S. Holding Foreign Companies Accountable Act of 2020.
