China prepares to hand over audit docs to US regulators

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

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The US 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 US 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 US 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.