This translation has been automatically generated and has not been verified for accuracy.The head of the U.S. securities regulator on Wednesday warned investors against putting money into Chinese companies as they rebalance their portfolios following market turmoil due to ongoing problems with those companies’ disclosures.
Clayton’s remarks came after the regulator late on Tuesday said that Beijing-based U.S-listed issuers should “present risks prominently, in plain English and discuss them with specificity.”That note reitered that the SEC and other authorities often have substantial difficulties in bringing and enforcing actions against non-U.S. companies for false disclosures around the nature and quality of financial information, including financial reporting and audits.
The PCAOB, which was set up by the 2002 Sarbanes-Oxley Act and is overseen by the SEC, is tasked with policing the accounting firms that sign off on the books of the nation’s listed companies. Its problems with Chinese audit quality have been festering since 2011, when scores of Chinese companies trading on U.S. exchanges were accused of accounting irregularities.
globeinvestor It is pure folly to take anything coming out of the US as gospel. Everything, absolutely everything, tainted and suspect.
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