The PCAOB claimed last year that Chinese authorities had barred it from conducting a thorough inspection and investigation in Hong Kong and the mainland. 2020 will see the passage of legislation approved by American politicians that would ban Chinese firms from trading on American stock markets unless they comply with American auditing requirements.
Senior Portfolio Strategist at INGALLS & SNYDER in New York, Tim GriffithWe’ll check to see how much information is actually provided and whether it can be verified. All of that is still up in the air. It’s a fantastic thing that, supposedly, will legitimate these businesses and remove one of the risks associated with investing in them.
Source : Wall street journalIf this accounting error turns out to have problems, it may be very disastrous for the industry, especially if nothing is done to fix it or be honest about it. Hopefully everything is fine and that these businesses have received this endorsement. The other problem is that China released very weak economic data while it was still essentially under Covid lockdown, which is still in effect. Don Calacgni is the Chief Investment Officer at Denver-based Mercer Advisors.My first impression is that it’s good. It is a need in order to proceed. We require openness. We must ensure that our standards are ones in which we have faith. I do believe it to be a significant advancement. The market, however, and investors like myself continue to have doubts about the accuracy of the data we receive from China, particularly from Beijing. The information you are receiving from the Chinese Communist Party is just not reliable . Share your views in the comments below .
