The U.S. audit regulators are having regular talks with China’s securities watchdog. The talk mainly concerns the audit cooperation and faster deal. The worry in the U.S.-listed Chinese firm delisting leads the Chinese regulators to dispute. The chairman of the China Securities Regulatory Commission, Fang Xinghai said that he is ready to solve the dispute with Washington.
At the annual Boao Asia Forum, Fang said that he is confident to reach an agreement watchdog in the near future. His core motivation is that PCAOB could conduct checks on Chinese accounting firms in reasonable ways. He referred to the Public Company Accounting Oversight Board, the U.S. audit regulator. Fang also added that the prolonged uncertainties will end soon. In other words, he expected that it would bring good news for Chinese stocks listed overseas.
However, investors continue to dumb China tech stocks this week, said IFR Asia. It was due to the U.S. Securities and Exchange Commission that identifies 17 more U.S-listed mostly Chinese companies. These include Li Auto, Zhihu, and Sohu.com. SEC have identified at least 11 additional companies including Baidu and Yum China.
Yuan Yuwei, a hedge fund manager at Water Wisdom Asset Management said that the deal between China and the U.S. would not happen anytime soon. He referred to the geopolitical tensions between the U.S. and China. Investors are highly concerned about the cost of China’s zero-covid policy and lockdowns.
As a result, Hong Kong’s Hang Seng Tech Index plunged as much as 3.6%. It follows the crash of many other, the Nasdaq Golden Dragon China Index fell at 5.2% overnight. The market turns apathy for Fang’s promise. It impacts investors’ weariness amid long-running Sino-U.S. frictions, said Zhang Yingbiao, Shenzhen fund manager.