After the US SEC bombshell last month about the China affiliates of each of the ‘Big Four’ accounting firms failing to hand over audit papers, Chinese authorities (namely the CSRC) will tighten up regulations regarding IPOs. But this could freeze new listings until until the end of March. Reuters explains today:
China’s securities regulator is requiring underwriters and auditors of all applicants for domestic initial public offerings to re-examine their financial statements as part of efforts to boost the quality of listed companies.
Ultimately, it could prove to be good for the profile of Chinese companies if it prevents financial scandals like the Longtop incident in 2011. Hit the source for the full details.
(Source: Reuters)
