China Removes Key Hurdle to Allow U.S. Full Access to Audits

The transcript discusses changes in regulations affecting Chinese firms listed overseas, particularly in the US. The CSRC is considering removing a rule that required Chinese regulators to conduct on-site inspections, which could align with US laws demanding full access to auditing reports. This change is seen as positive for over 200 Chinese firms listed in the US, potentially preventing their delisting from NYSE and NASDAQ. The market reacted positively to news of a framework being developed to comply with US laws. A resolution could resume Chinese IPOs in the US, which have stalled due to recent crackdowns.

What was the requirement of the old rule regarding on-site inspections for Chinese firms listed overseas?

• Inspections had to be conducted by U.S. regulators.

• Inspections were to be conducted by Chinese regulators.

• Inspections were conducted by third-party agencies.

• Inspections were optional for Chinese firms.

What is the significance of the CSRC's proposed rule change?

• It mandates U.S. firms to follow Chinese regulations.

• It restricts Chinese firms from listing in the U.S.

• It opens the door for compliance with U.S. law.

• It allows Chinese firms to bypass U.S. regulations.

How did the market react to the news of regulatory changes for Chinese firms?

• Investors withdrew from the market.

• There was a big rally in the market.

• The market remained unchanged.

• There was a significant market decline.

What has been a long-standing issue affecting Chinese firms listed in the U.S.?

• Access to auditing reports.

• Currency exchange rates.

• Trade tariffs.

• Intellectual property rights.

What potential outcome could result from resolving the audit access issue?

• A decrease in Chinese IPOs in the U.S.

• A ban on Chinese firms in the U.S.

• An increase in trade tariffs.

• Resumption of Chinese IPOs in the U.S.