US regulators have selected e-commerce giant Alibaba Group Holding and other US-listed Chinese companies for audit inspections starting next month, according to three sources familiar with the matter, reports Reuters. The move follows Friday’s landmark audit deal between Beijing and Washington allowing US regulators to vet accounting firms in mainland China and Hong Kong, potentially ending a long-running dispute that threatened to boot more than 200 Chinese companies from US stock exchanges.
Alibaba has been notified that it is among the first batch of Chinese companies whose audits will be inspected by the US audit watchdog—Public Company Accounting Oversight Board (PCAOB)—in Hong Kong, according to the sources.
PwC, the accounting firm of China’s biggest e-commerce company, has also been informed of the audit work inspection, said the sources, declining to be identified due to confidentiality constraints.
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