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China amends key audit rule for US-listed firms

China has revised a decade-long rule that prevents US regulators from gaining full access to auditing reports of Chinese companies listed in New York. According to a Bloomberg report, the revised draft rules deleted the requirement that only Chinese regulatory agencies can conduct on-site inspections of the majority of the 200-plus New York-listed Chinese firms. The amendments potentially end a decades-long dispute that escalated when the US set a 2024 deadline for removing non-compliant businesses off the New York Stock Exchange and Nasdaq. As of May 2021, there are more than 200 Chinese firms listed in the US as American Depositary shares, with a combined market capitalisation of USD2.1tr.

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