Posted on 05/18/2020 6:55:12 PM PDT by Hojczyk
Since 2013, Chinese companies have been allowed to participate in U.S. stock and bond exchanges without having to fully comply with the same Sarbanes-Oxley Act accounting practices and risk disclosure required of American companies.
The concession was made in a little-noticed Memorandum of Understanding executed seven years ago by the Public Company Accounting Oversight Board (PCOAB), a nonprofit regulator empowered by the Sarbanes-Oxley law to ensure U.S. investors are protected from making bad investments because of faulty audits or financial information.
The agreement was reached in May 2013 after Chinese leaders pleaded for improved access to American capital markets in multiple meetings with then-Vice President Joe Biden, transcripts from the Obama administration’s archives show..
Now seven years later, the PCAOB and its parent Securities and Exchange Commission have allowed the agreement to continue despite their own warnings that China has not been complying with the MOU and has left global investors, including Americans, with potentially risky investments totaling as much as $1.9 trillion.
“We remain concerned about our lack of access in China,” the PCOAB said in a recent statement. “….Unfortunately, since signing the MOU in 2013, Chinese cooperation has not been sufficient for the PCAOB to obtain timely access to relevant documents and testimony necessary to carry out our mission consistent with the core principles identified above, nor have consultations undertaken through the MOU resulted in improvements.”
The warning, also echoed by the SEC, means that federal regulators can’t ensure American investors who wittingly or unwittingly invest in Chinese companies that the financial data offered by those companies is sound.
(Excerpt) Read more at justthenews.com ...
The agreement was reached in May 2013 after Chinese leaders pleaded for improved access to American capital markets in multiple meetings with then-Vice President Joe Biden, transcripts from the Obama administration’s archives show..
...
How much money did Hunter get from the Chinese Communists?
Biden family Chicom connections - bump for later......
Alibaba is a boo chit company who has been allowed to violate SEC requirements from day one and I still dont understand why...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.