Breakingviews - CORRECTED BREAKINGVIEWS Audit deal will leave traders with China dregs

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Breakingviews - CORRECTED BREAKINGVIEWS Audit deal will leave traders with China dregs
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Beijing has conceded to U.S. demands which could let $1.5 trln of New York equities skip delisting. A swathe of Chinese companies will still leave New York; the remainder could be a sad lot, says petesweeneypro

and audited by Deloitte’s Chinese unit. Chinese security law blocked Deloitte China and other auditors from cooperating with investigations even as owners of U.S. stocks lost their shirts, with little recourse.

In 2020, U.S. legislators passed a law to evict any foreign firm whose auditor does not allow the Public Company Accounting Oversight Board to double-check its books by 2024. The overwhelming majority of violators are Chinese. State-owned firms began to proactively exit this month while some private companies like AlibabaRegister now for FREE unlimited access to Reuters.

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