Delisting fears: China may let US in on audits of some companies

Companies such as quick service restaurant operator Yum China Holdings could be examples of those that the provision would apply to

China’s securities watchdog is weighing a proposal that would allow US regulators to inspect auditors’ working papers for some companies as soon as this year, people familiar with the matter said, in a bid to prevent Chinese firms from being forced to delist en masse from U.S. exchanges.

The China Securities Regulatory Commission is considering allowing US officials to inspect documents on firms that don’t possess sensitive data, the people said, asking not to be identified as the information is private. Companies such as quick service restaurant operator Yum China Holdings could be examples of those that the provision would apply