China preparing to hand over audit documents to U.S. regulators

Last Updated: Wed, Jul 10, 2013 03:38 hrs

SHANGHAI (Reuters) - China's securities watchdog said it is poised to turn over audit documents of a Chinese company listed in the United States to U.S. regulators, signaling a possible breakthrough in an international dispute over accounting scandals.

The U.S. Securities and Exchange Commission has been struggling to get papers out of China to investigate possible accounting fraud at dozens of Chinese companies listed on U.S. stock exchanges. China, for years, has resisted turning over documents because of state secrets and sovereignty concerns.

The China Securities Regulatory Commission (CSRC) is now ready to transfer audit papers to the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), a CSRC spokesman said, confirming earlier local media reports.

The spokesman did not identify the Chinese company whose audit documents the CSRC is turning over. (Reporting by Samuel Shen in SHANGHAI and Dena Aubin in NEW YORK; Editing by Ryan Woo)

More from Sify: