HONG KONG -- More than a dozen U.S.-listed Chinese companies have switched from auditors in their home country to ones in the U.S. and Singapore since 2022, reducing the risk they could be thrown off American exchanges, a Nikkei Asia analysis shows.
Under a 2020 law called the Holding Foreign Companies Accountable Act (HFCAA), Chinese companies can be delisted if their auditors fail to comply with U.S. accounting standards. Those requirements include allowing inspections of auditors by the Public Company Accounting Oversight Board (PCAOB).
