U.S. regulators completed the first on-site inspection of Chinese company financial statements and audit papers as mandated by the 2020 Holding Foreign Companies Accountable Act, according to reports Friday in Reuters and Bloomberg. Dozens of officials from the Public Company Accounting Oversight Board, tasked with inspecting the audit papers of companies listed on U.S. exchanges, are set to leave Hong Kong in the coming days about a week ahead of schedule the reports say. Chinese stocks rose following the news, with the iShares MSCI China ETF MCHI gaining more than 6% Friday. The inspections are part of an effort to enforce the 2020 law, which states that foreign firms listed on U.S. exchanges must follow the same auditing rules that American companies do, or risk being delisted.
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