China and the United States agreed on Friday a preliminary deal on cooperation on audit standards that could have an impact on circa 150 Chinese companies – including casino operator Melco Resorts and Entertainment Ltd.
The China Securities Regulatory Commission and the U.S. Public Company Accounting Oversight Board (PCAOB) signed an accord on audit cooperation, the two bodies said separately that day. The two statements did not provide details of their collaboration.
The South China Morning Post reported on Friday that U.S. officials would be in Hong Kong by mid-September to commence a review related to the agreement, “after screening by Chinese authorities”.
The U.S. Securities and Exchange Commission (SEC) had on April 12 this year placed Melco Resorts and Studio City International Holdings Ltd on its provisional list of Chinese companies at risk of being delisted from U.S. bourses.
Both companies are considered by the SEC to be covered by the U.S.’s Holding Foreign Companies Accountable Act. The Act requires audits be conducted by firms subject to inspection by the U.S. oversight body.
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