The Chinese government has told local firms listed in the United States to gear for more audit disclosures as it boosts efforts to secure that they remain listed in the market, Reuters reported.
The China Securities Regulatory Commission (CSRC) and other agencies earlier this month sent for major internet firms such as search engine Baidu Inc. and e-commerce player JD.com Inc.
The firms were told to ready audit documents covering the financial year 2021, in line with anticipation of requests from US regulators for more disclosures. The CSRC has yet to comment on the matter.
The companies were told to seek advice from Chinese regulators should they have any uncertainties regarding the process, such as auditing and communications with American regulators.
The announcement was disclosed by sources close to the matter and came as regulators are looking into allowing US authorities to review audit working papers of Chinese firms that do not collect sensitive information. MCHI is up 2.82%, BIDU up 3.18%, and JD up 2.13%.